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It seems many have taken for granted that pandemic stimulus spending is the prime suspect for causing painful price increases. Despite the widely known mantra of eminent economist Milton Friedman, who said inflation is always related to money supply, researchers have been unable to find a relation since the 1990s. Other than the fact that no direct relationship between money supply and inflation has been found for decades, assessing stimulus details and the timing of inflation may also suggest pandemic aid is not the culprit. Read at: Relentless Inflation: Excess Stimulus or Suppressed Supply – Aesop Advisor
By Aesop AdvisorIt seems many have taken for granted that pandemic stimulus spending is the prime suspect for causing painful price increases. Despite the widely known mantra of eminent economist Milton Friedman, who said inflation is always related to money supply, researchers have been unable to find a relation since the 1990s. Other than the fact that no direct relationship between money supply and inflation has been found for decades, assessing stimulus details and the timing of inflation may also suggest pandemic aid is not the culprit. Read at: Relentless Inflation: Excess Stimulus or Suppressed Supply – Aesop Advisor