Low interest environments exist because liquidity is growing in the financial system. As that liquidity escapes into the consumer system, which it always does, it causes inflation.
Then how would you explain ultra low interest rate for 10+ years without associated inflation spike? It was only until double/triple whammy of supply chain disruption/ government handing out cash/ opptunistic price gouging that inflation really took hold
low interest rates are not always the result of loose monetary policy; given that the low rates didn't result in inflation, they likely reflected lower real growth expectations or other demand side factors.
Supply chain disruption and opportunistic price gouging are actually SIGNS of inflation, not causes of it. In a socialist country I grew up in the opportunistic price gouging was illegal, so supply chain was ALWAYS disrupted…
So, in your list the only true cause of inflation remains.
Right because once the public has real economic power the rich do not so they juice their prices, and meddle in other ways to deflate the buying power; aka inflate prices.
$200k in the 80s would be $600k buying power now. But it’s barely middle class.
Our society is entirely a wealth preservation scheme for people who cannot prove they did the work, they just have political documents of power.
dilyevsky|2 years ago
dageshi|2 years ago
Housing, the stock market, crypto.
Supply of goods and services could mostly keep up with any increased demand so you didn't see inflation so obviously there.
mr_toad|2 years ago
MrFoxFriday|2 years ago
MikePlacid|2 years ago
So, in your list the only true cause of inflation remains.
issore|2 years ago
$200k in the 80s would be $600k buying power now. But it’s barely middle class.
Our society is entirely a wealth preservation scheme for people who cannot prove they did the work, they just have political documents of power.