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by mywittyname 1868 days ago
It's difficult to really judge how much of an impact money supply increases are having on the cost of goods since there are also massive supply issues.

For example, prices for housing materials have been skyrocketing for years; well before covid. Back then it was blamed on other unpopular political situations (trade war, mostly). Now it's blamed on covid relief.

Once production stabilizes, we'll have a better way to measure inflation due to money supply increases against inflation due to supply shortages.

1 comments

> Once production stabilizes, we'll have a better way to measure inflation due to money supply increases against inflation due to supply shortages.

Wont the rents for workers go up due to housing price inflation?

Low interest rates should keep some of that in check but it will be offset by the rise in property taxes being calculated off the "new normal" home prices we're seeing. Basically, whatever property tax increases are capped at, expect to see an increase of about that much if not more YoY after people start paying taxes on their new homes.