[TheOtherHobbes]

The theory completes ignores the fact that inflation is driven by two things: external supply shocks and corporate profiteering. There's some catch-up from wage inflation later, but it's a reaction to higher prices not a driver of them.

Tinkering with the money supply is like repainting your house when it's on fire. If your house is unstable it's not because it's the wrong colour. It's because the foundations need underpinning and perhaps a redesign.

[dsfyu404ed]

>The theory completes ignores the fact that inflation is driven by two things: external supply shocks and corporate profiteering.

Citation please for this supposed "fact".

The accepted wisdom is that inflation is driven by the size of the money supply and the velocity of the money.