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.
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.