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by yyyk 1863 days ago
Inflation is mostly a monetary phenomenon. They'd limit creation of new money so it very rarely happens, and then we get deflation.

Of course they'd end up printing money via some L2/L3 and we get the same deal. If we actually followed through, we'd get permanent deflation which is an obvious disaster even without accepting the Keynesian arguments against it (I find that part of Keynesian thinking to be mostly false).
1 comments
imtringued 1863 days ago
>Inflation is mostly a monetary phenomenon

In an economy, where everything is scarce and people can't get enough of the things that they need. The US and EU economies are not like that. Turkey is like that, Zimbabwe is like that, Argentina is like that, Venezuela is like that.

In the US the only scarcity exists in housing and it is purely self inflicted. All inflations are caused by scarcity or shortages, solve the shortage and you solve the inflation. Covid won't be here forever, any shortages it causes won't be permanent but it may take years to recover if you are pessimistic.

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yyyk 1862 days ago
We're hardly at a post-scarcity economy. At most we can say that (poor quality) food isn't scarce. Education, housing, transportation, medical care etc. are scarce. Self-inflicted? At least to some extent. But artificial scarcity is still scarcity when you're on the receiving side.
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