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by whatever1
1364 days ago
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In Europe we did not print (that much) money and still got inflation. In fact, the countries that use the same euro currently posted different inflation rates. In your economic model we should have evenly distributed inflation. So there you go. |
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> the countries that use the same euro currently posted different inflation rates.
this is expected.
> In your economic model we should have evenly distributed inflation.
no one expects inflation to occur uniformly. its well understood that one of the prime distortionary factors that result from money printing is that the price level does not adjust uniformly, but responds to where the money is spent. This is bad for inequality because typically the newly printed dollars are preferentially routed to politically connected client groups who then use these new (unearned) funds to purchase assets at prices that have not had time to adjust to the increased money supply.