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> I could explain to a child how printing new money causes inflation, which we did twice since COVID. We've printed money a dozen times in the 30 years prior t
by bryanlarsen 2y ago
> I could explain to a child how printing new money causes inflation, which we did twice since COVID.
We've printed money a dozen times in the 30 years prior to 2022. Economists predicted that all of them would cause inflation. None of them did.
In 2022 we had money printing and a supply side squeeze. Insisting that the inflation was caused by the money printing rather than the supply side squeeze takes incredible chutzpah.
- parineum 2y agoThe money printing in response to COVID followed by the the infrastructure bill were at a scale not seen before and shouldn't be so easily dismissed in reference to previous deficit spending.
- bryanlarsen 2y agoGermany (and others) printed at a lower rate. If it was a momentary phenomenon, they would have appreciated against the dollar and seen less inflation. Instead they depreciated against the dollar and saw more inflation. Because they had a greater supply shock.
- bryanlarsen 2y agoedit: monetary phenomenon. Autocorrect ugh.