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by missedthecue 2255 days ago
>1. We would need to print quadrillions of dollars to get hyperinflation.

Is there actually a mathematical equation that proves this or is that your conjecture?

2 comments

Look at the MZM, which is a good proxy for 'all the money in the economy'. [1]

There's ~20 Trillion of it.

Hyperinflation is, by definition, 50% monthly, ~600% annual inflation.

The Fed has, so far in this crisis, printed ~2 Trillion that is staying in the economy (The rest goes into very short term liquidity). It's not a hyperinflationary scenario, even if they print another 2, or 4, or 6 trillion.

If they printed 20 trillion, that would be another story.

[1] https://fred.stlouisfed.org/series/MZM

I’d love to find out otherwise, but I don’t think so. Macro economics is social science, not mathematics.