Because the easiest way to cause significant inflation is to increase money supply? No one really uses doge for anything else, so that seems like a very good proxy. If compared to M1 or M2 doge would actually fare much better.
Inflation is a function of supply and velocity, not simply supply. Concretely, the M2 supply is 15X higher than it was in the 1970s but inflation left each one worth 1/7th. [1]
Supply is only half the puzzle. No cryptos actually take into account supply and velocity when attempting to control inflation which is something any economist would tell you is trivially flawed.
Substantially every crypto talking head conflates supply increase with inflation, but they are not the same thing, not by a long shot.
I am not 100% convinced the PQ side applies to assets. It works well for newly produced goods/value introduced into the economy, but market can keep trading 2 assets at a 10x or 1000x velocity back and forth but there is no price difference unless asset (money) supply or demand for one changes.
Japan has been trying to create inflation for decades by monetary expansion, monetizing their debt, zero interest rates, all the tricks. It has mostly failed. It is _not_ the easiest way to cause significant inflation.
>It is _not_ the easiest way to cause significant inflation.
Or maybe they're not solely interested in causing inflation, and are concerned about other effects as well? eg. preventing hyperinflation. If all you wanted to do is cause inflation, you can do so very easily with helicopter money.
Yeah, helicopter money is pretty much the easiest way.
However, Japan makes me wonder why it is a problem in the first place. I mean, why does a problem need helicopter money as the solution? Why is no other method capable?
Consider this, if you increase the money supply and inflation doesn't happen, then there must be a deflationary force that is equal to the newly created inflation caused by increasing the money supply. This could be enough explain the ineffectiveness of low interest rates (debt must be paid back and therefore no inflation happens) but it is not enough to explain why QE didn't work because the Fed can sit on financial assets forever, if necessary.
Difficult to say as they are not 'actually' printing money tho they call it that, they are just creating bank reserves and since they are not used as money they don't generate inflation, not as measured by the cpi anyways.
This is likely attributable to savings rates being at near all-time high in the US causing velocity to fall off. If people are saving not spending, there is no additional demand for goods, which means their prices do not rise, and inflation does not materialize.
