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So we would expect to find a strong correlation between how much of deficit a country runs vs how much inflation it’s seen over recent years, right? Now I’m not
by kennywinker 2y ago
So we would expect to find a strong correlation between how much of deficit a country runs vs how much inflation it’s seen over recent years, right? Now I’m not an economist, but that doesn’t seem to be there. Not that I’ve come across anyway.
As i understand it, gov spending CAN trigger inflation, but it doesn’t automatically. If gov buys something that scales up easily, then their demand is easily absorbed without inflation. If gov buys up stuff that’s in short supply, some inflation might happen.
- WalterBright 2y agoI twice posted links to the graphs showing the strong correlation.
- kennywinker 2y agoI see you posting about a correlation between deficit and inflation in the US. Not a comparison of deficits vs inflation between countries. The US economy being correlated to the US economy doesn’t prove much.
- WalterBright 2y agoThere's plenty of historical evidence for this, too, in country after country. Even in Roman times.