4 ms·
First, the increase in the McD burger price over those 7.5 years constitutes around 4% p.a. That's certainly not great, and twice the usual inflation target, bu
by FabHK 2y ago
First, the increase in the McD burger price over those 7.5 years constitutes around 4% p.a. That's certainly not great, and twice the usual inflation target, but not catastrophic.
Second, there was no "out-of-control" money printing in Australia, see [1].
Third, if there was out-of-control money printing (and there was some loose monetary policy, and at the zero lower bound this does involve expansion of the central bank balance sheet, ie QE), it was after the GFC in 2007 [2]. However, there was no inflation for a decade and a half after.
But then, the pandemic and the Ukraine war hit. Now you had supply constraints (reduced production and logistics challenges) and also increased demand (due to fiscal easing (stimulus, subsidies) during the pandemic, and people "catching up" on spending afterwards). And then there was a short bout of inflation.
Why do people keep complaining about money printing if that's not the cause for inflation?
Fourth, you find extensive discussion of all these issues in utterly mainstream media.
[1] Here's M1 and M3 for Australia (log scale).
https://fred.stlouisfed.org/graph/?g=1riAu https://fred.stlouisfed.org/graph/?g=1riAu
https://fred.stlouisfed.org/graph/?g=1riAC https://fred.stlouisfed.org/graph/?g=1riAC
[2] US Fed Assets (log scale)
https://fred.stlouisfed.org/graph/?g=1riAC https://fred.stlouisfed.org/graph/?g=1riAC
- spaceman_2020 2y agoDid you miss the part where I said that out of control money printing finds its place first in asset prices? Go look at the inflation in Australian home prices since 2008