5 Comments

Honestly I never think anyone is talking about monetary inflation when they use the word "inflation," because it's the prices that scare people, right? I think most people have a vague idea that the government "just prints more money" and there's something fishy about it, but I don't think most people connect it with anything?

Thank you for making this distinction though!

Expand full comment

Typos: is that, as economist John Harvey at Texas Christian University explains, they are usually a cause of, not a result of, price inflation,

A cause of should be caused by.

Not a result of should be not resulting in

Expand full comment

Oh, wow, thanks for noticing that! I just corrected it.

Expand full comment

Haven't they already cobbled up a response to the statement monetary inflation doesn't cause price inflation when they hauled out the canard the current instance is the result of stimulus money, the child tax credit, and the UC supplement?

Expand full comment

Very illuminating, thanks for posting this.

On what I think is a somewhat related note, is it fair to say that the Fed government's fiscal surplus during 2021 and continuing into this year contributed to the drop in GDP we saw in the first quarter of 2022?

Expand full comment