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by ch4s3 1355 days ago
> In fact, new money supply is a minority influence on inflation

This obviously depends on how the money supply is created and deployed. If you take out loans to hand out stimulus check you get more inflation than you would from a similar dollar value of QE.
1 comments
koheripbal 1355 days ago
Not if only one US state is doing this.

USD is a MASSIVE global currency.

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ch4s3 1355 days ago
Yeah, sure but CA is an economy the size of France and represents a LOT of consumer purchasing power. Some cost like rent are also pretty local and represent a relatively fixed supply of goods. I wouldn't personally bank on global demand for dollars absorbing a bunch of new money supply sloshing around in markets local to CA.
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