We didn’t get 300% inflation. So clearly the value of all dollars isn’t simply a direct percentage of the size of the US economy or all wealth in the US etc.
I think we have very different definitions of moderate inflation.
Note: I don't consider CPI a good measure of inflation experienced by the average consumer. Unfortunately the measure is heavily politicized and thus highly distorted from real-world experience.
Nonetheless, using CPI as a benchmark:
- Average CPI exploded 382% between 2020 and 2021 (from 1.23% to 4.7%)
- Grew another 170% from 2021 to 2022 or 650% increase from 2020 to 2022 (2022 CPI was 8.0%)
- It subsided somewhat in 2023 and 2024 (to 4% then 3%) but remains significantly higher than historical norms.
Notably, CPI is now expected to remain at or above 3% for the foreseeable future, which is a sustained 50% increase over the previous target of 2%
The Fed is now working to normalize this new normal as there is basically no chance of us ever returning to the prior target of 2% CPI anytime soon.
Also note that the largest spikes in inflation align closely with the Feds massive money printing in 2021 and 2022.
1.23% is below the FED’s target, they would want it to rise to maintain healthy economic growth. 4.7% is also slightly outside the desired range but they don’t consider it a major issue during an economic crisis.
> authoritative source the World Bank says moderate inflation is 15-30%
I'm not sure if you are being serious or not. Think it through, are you telling me you believe that 29% year over year inflation for years on end with prices doubling every 3 years -- is moderate inflation? And do you really believe after making such a ludicrous statement that the world bank is a credible authoritative source on anything?
Do you also still believe that inflation from 2021-2024 was primarily due to COVID, the war in Ukraine and supply chain issues? Do you choose to ignore, like the government and the FED that printing 80% of all the dollars ever created between 2021-2022 was not an important or more likely the primary factor driving inflation?
We didn’t get 300% inflation. So clearly the value of all dollars isn’t simply a direct percentage of the size of the US economy or all wealth in the US etc.