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by skybrian
2178 days ago
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Well that depends. If it's preserving spending power (you were laid off) then it wouldn't be a spending increase. The supply was already there. Inflation is an average of price increases. You get price increases when supply can't expand as fast as demand while keeping the price of inputs the same. This depends on whether there are supply bottlenecks and what the nature of those bottlenecks are. There have been some supply bottlenecks due to deliberate closures, but mostly temporary. In a recession, the assumption is that there is extra capacity already, particularly for labor. |
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I took this with OP stating (incorrectly imho) that a certain policy was not inflationary. I am not advocating that all inflation is bad.