Re:U.S. inflation rate rises to 13-year high of 5.4%
by dragonwriter on Wednesday October 13, 2021 @03:42PM
(#28856615)
> Who would have thought printing Trillions of US dollars for pandemic relief would circulate more money in the market and lead to inflation?!
Pretty much everybody, as that was precisely (in comparison to the expected course without it) the intent.
That eventually stimulus of all kinds would have to be reeled back in to control inflation was also expected.
The exact timing and course of the rebound in both the general economy and inflation was less predictable, and widely understood as such.
> Not saying a government shouldn't provide relief during a pandemic, just stating that it sounded obvious to me rather than alarming.
It shouldn't be considered overly alarming, in broad monetary terms, in the short term, the question is whether appropriate steps are taken to prevent it from becoming alarming, on the broad monetary front, and whether appropriate steps are taken to address acute harms on the distributional front.
Most people here seem more concerned about the first question and less or unconcerned about the second.
Pretty much everybody, as that was precisely (in comparison to the expected course without it) the intent.
That eventually stimulus of all kinds would have to be reeled back in to control inflation was also expected.
The exact timing and course of the rebound in both the general economy and inflation was less predictable, and widely understood as such.
> Not saying a government shouldn't provide relief during a pandemic, just stating that it sounded obvious to me rather than alarming.
It shouldn't be considered overly alarming, in broad monetary terms, in the short term, the question is whether appropriate steps are taken to prevent it from becoming alarming, on the broad monetary front, and whether appropriate steps are taken to address acute harms on the distributional front.
Most people here seem more concerned about the first question and less or unconcerned about the second.