The mega trillions of printing money has been happening since 2008, it's only now that we're seeing inflation. Japan engaged in quantitative easing as early as 2001 with no inflationary effects. Similarly, we dumped trillions in stimulus to banks and other businesses in 2008-2010 with no inflationary effects. We didn't even see inflation after the stimulus bills of 2020 or 2021. It's only now, with the supply chain totally broken and things starting to break down with no replacements in sight, that we're seeing inflation. That suggests a different cause than the one you're suggesting. Not saying that massive levels of stimulus are helping the situation, but the trigger does not seem to be quantitative easing or stimulus money.
No, the trigger is not the money supply. It's still a monetary policy failure to not manage demand when supply chains break down.
The 2008 example, it's not as simple as more money = inflation and that's not what I'm saying. It's more about demand management. Which yes has a lot to do with interest rates.
We didn't have inflation in 2008 but we did have this meaning people anticipated inflation at some point in the future, horded money, demand falls, inflation canceled before it began.
The mega trillions of printing money has been happening since 2008, it's only now that we're seeing inflation. Japan engaged in quantitative easing as early as 2001 with no inflationary effects. Similarly, we dumped trillions in stimulus to banks and other businesses in 2008-2010 with no inflationary effects. We didn't even see inflation after the stimulus bills of 2020 or 2021. It's only now, with the supply chain totally broken and things starting to break down with no replacements in sight, that we're seeing inflation. That suggests a different cause than the one you're suggesting. Not saying that massive levels of stimulus are helping the situation, but the trigger does not seem to be quantitative easing or stimulus money.
No, the trigger is not the money supply. It's still a monetary policy failure to not manage demand when supply chains break down.
The 2008 example, it's not as simple as more money = inflation and that's not what I'm saying. It's more about demand management. Which yes has a lot to do with interest rates.
We didn't have inflation in 2008 but we did have this meaning people anticipated inflation at some point in the future, horded money, demand falls, inflation canceled before it began.
Ah I see what you're saying. Yes, this has been a tremendous policy failure and the Fed definitely should have raised rates far earlier.