If the government drastically increased interest rates during covid you're right we'd have less inflation. I don't see the argument here.
> This is what people seem to forget. Trade involves two items, so you gotta look at both sides of the trade (in this case credit+dollars vs goods). Dollar supply has increased dramatically since 2020, credit near free, while the supply of goods has decreased. Obviously that's a recipe for inflation.
I don't think anyone forgets this. The standard model says supply constrained + generous fiscal/monetary policy = inflation.
The parent post mentioned "money printing coming home to roost. Lots of folks say that isn’t what it is." I too seem to have encountered people saying the money printing is a non-factor, and it's just supply chain problems. In reality, both are factors.
> This is what people seem to forget. Trade involves two items, so you gotta look at both sides of the trade (in this case credit+dollars vs goods). Dollar supply has increased dramatically since 2020, credit near free, while the supply of goods has decreased. Obviously that's a recipe for inflation.
I don't think anyone forgets this. The standard model says supply constrained + generous fiscal/monetary policy = inflation.