Hmm. Normally I am in lock-step with you. A bone to pick in this one however. I associate vast increases in the money supply following Covid with inflation. The price of everything rose due to debasement of the currency and supply chain disruptions. What am I missing?
You are missing nothing. Increases in the money supply that outpace the growth in the economy add to inflation. Supply chain disruptions were an excuse, not a cause. But the primary cause of inflation recently is higher energy costs which provided the fuel for inflation and the rampant sovereign borrowing lit the match.
Hmm. Normally I am in lock-step with you. A bone to pick in this one however. I associate vast increases in the money supply following Covid with inflation. The price of everything rose due to debasement of the currency and supply chain disruptions. What am I missing?
You are missing nothing. Increases in the money supply that outpace the growth in the economy add to inflation. Supply chain disruptions were an excuse, not a cause. But the primary cause of inflation recently is higher energy costs which provided the fuel for inflation and the rampant sovereign borrowing lit the match.