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Except you are obviously wrong. If US monetary policy had been the cause then the inflation would have been due to the dollar losing value and you would have se

Except you are obviously wrong. If US monetary policy had been the cause then the inflation would have been due to the dollar losing value and you would have seen a change in exchange rates against other currencies. But you didn't.

gottorf 2y ago
US monetary policy didn't exist in a vacuum! The dollar did lose value relative to actual things you can buy, like groceries and houses, but did not lose value relative to other currencies because other countries were also printing money like mad.
- olddustytrail 2y ago
  Some were and some weren't. Which currencies appreciated significantly against USD in this period? Come to think of it, the UK didn't. It borrowed instead. Why didn't GBP massively increase against USD?
  - gottorf 2y ago
    > Which currencies appreciated significantly against USD in this period? Very few did. A quick snapshot is the Dollar Index, which is a basket of six "major" currencies (pound sterling, yen, Euro, Swiss franc, Canadian dollar, and Swedish krona), which remains higher (stronger dollar) today than even the Covid crash peak, during which basically everything that could be traded did so in a huge range due to extreme market volatility. The Swiss franc is stronger against the dollar since 2019, and so is the Mexican peso, both by roughly 9-10%. That's about it for what I can think of in terms of globally relevant currencies. Most everything else is weaker against the USD than back in 2019. The US dollar, by virtue of being the global reserve currency, can likely absorb more abuse than others. It's often called the cleanest shirt in a pile of dirty laundry. > the UK didn't. It borrowed instead. Why didn't GBP massively increase against USD? It looks like the UK spent roughly ~5k per capita as a response to Covid[0]. When the spending comes from budgetary deficits (that is, absent a commensurate increase in taxes) financed by new bond issuance ("borrowed", as you said), and a large part of said bonds were absorbed by the central bank[1], it's effectively printing money. [0]: https://commonslibrary.parliament.uk/research-briefings/cbp-9309/ https://commonslibrary.parliament.uk/research-briefings/cbp-... [1]: https://tradingeconomics.com/united-kingdom/central-bank-balance-sheet https://tradingeconomics.com/united-kingdom/central-bank-bal...

gottorf 2y ago

US monetary policy didn't exist in a vacuum! The dollar did lose value relative to actual things you can buy, like groceries and houses, but did not lose value relative to other currencies because other countries were also printing money like mad.

olddustytrail 2y ago
Some were and some weren't. Which currencies appreciated significantly against USD in this period? Come to think of it, the UK didn't. It borrowed instead. Why didn't GBP massively increase against USD?
- gottorf 2y ago
  > Which currencies appreciated significantly against USD in this period? Very few did. A quick snapshot is the Dollar Index, which is a basket of six "major" currencies (pound sterling, yen, Euro, Swiss franc, Canadian dollar, and Swedish krona), which remains higher (stronger dollar) today than even the Covid crash peak, during which basically everything that could be traded did so in a huge range due to extreme market volatility. The Swiss franc is stronger against the dollar since 2019, and so is the Mexican peso, both by roughly 9-10%. That's about it for what I can think of in terms of globally relevant currencies. Most everything else is weaker against the USD than back in 2019. The US dollar, by virtue of being the global reserve currency, can likely absorb more abuse than others. It's often called the cleanest shirt in a pile of dirty laundry. > the UK didn't. It borrowed instead. Why didn't GBP massively increase against USD? It looks like the UK spent roughly ~5k per capita as a response to Covid[0]. When the spending comes from budgetary deficits (that is, absent a commensurate increase in taxes) financed by new bond issuance ("borrowed", as you said), and a large part of said bonds were absorbed by the central bank[1], it's effectively printing money. [0]: https://commonslibrary.parliament.uk/research-briefings/cbp-9309/ https://commonslibrary.parliament.uk/research-briefings/cbp-... [1]: https://tradingeconomics.com/united-kingdom/central-bank-balance-sheet https://tradingeconomics.com/united-kingdom/central-bank-bal...