Re:The U.S. economy's big problem? People forgot what 'norma...
by rayiner on Tuesday April 30, 2024 @07:04AM
(#40209624)
> between 2008 and the pandemic when way, way more money was being printed into the economy by quantitative easing?
The very helpful correction in a sibling comment notes that the majority of the change ($11 trillion) was from an accounting change.
But even then, M1 money supply increased from $1.6 trillion to $4 trillion gradually from 2008 to 2020. It then increased from $4 trillion to (20-11.4 = 8.6 trillion) from February 2020 to June 2022. So that’s $2.4 trillion over 12 years due to QE, and $4.6 trillion over two years due to the pandemic response. How is that still not the obvious cause of the inflation?
The very helpful correction in a sibling comment notes that the majority of the change ($11 trillion) was from an accounting change.
But even then, M1 money supply increased from $1.6 trillion to $4 trillion gradually from 2008 to 2020. It then increased from $4 trillion to (20-11.4 = 8.6 trillion) from February 2020 to June 2022. So that’s $2.4 trillion over 12 years due to QE, and $4.6 trillion over two years due to the pandemic response. How is that still not the obvious cause of the inflation?