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by 31835843
1458 days ago
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>Well when 80% of all US Dollars were "printed" / created in the last 2-3 years massive inflation will follow Be careful. This theory tracks for regular currencies, but gets distorted (note: I didn’t not say that it doesn’t apply, only that it isn’t as strong as you say) when the currency in question is the reserve currency for the world. Classic Model didn’t predict this, because “this” is a totally bonkers scenario. Inflation is running hot (additionally) because supply chains have been torched (China and Russia) just at the time when demand came roaring back (the world minus China gave up on lockdowns). You’re not wrong, but I encourage you to resist the temptation to simplify the story down to “classic” vs “MMT.” It’s tempting, but the world is very very complex and it ain’t getting any simpler. |
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