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I agree that in that case the economy ended up moving in the direction one would expect given the economic policy response taken, but without any way of ever be
by _heimdall 1y ago
I agree that in that case the economy ended up moving in the direction one would expect given the economic policy response taken, but without any way of ever being able to scientifically support causality we simply can't make the claim.
Its too easy with economics to look backwards and retroactively attribute what happened to a cause that would have made sense. It seems likely that Covid and the Russian war were causes of inflation, but we don't really know even that. For one thing, during the pandemic in the EU most stores and restaurants were closed. One could look at the economic relief (money printing) and expect inflation, but one could also look at the massive drop in spending and expect deflation instead. Had we seen deflation I fully expect today's economic analysis would be that lockdowns and business closures were clearly going to lead to deflation.