btw, have you noticed that the area under the red curve is substantially larger than the area under the blue curve... which suggests that inflation is either under-reported or that a 1-1 link between money supply and inflation is not correct.
Happy Valentines day Hell? Or are you too old for that. =)
Never too old for that in any case, and in fact not nearly for me.
On the curves, money velocity has been lower in recent years thus inflation hasn’t ramped up as fast as in the past. Most of the extra money went to inflate financial markets and cr@p like NFTs, cryptos and luxury items. However, with basic goods like energy and food now soaring money velocity is certainly going to pick up.
btw, have you noticed that the area under the red curve is substantially larger than the area under the blue curve... which suggests that inflation is either under-reported or that a 1-1 link between money supply and inflation is not correct.
ReplyDeleteHappy Valentines day Hell? Or are you too old for that. =)
Never too old for that in any case, and in fact not nearly for me.
ReplyDeleteOn the curves, money velocity has been lower in recent years thus inflation hasn’t ramped up as fast as in the past. Most of the extra money went to inflate financial markets and cr@p like NFTs, cryptos and luxury items. However, with basic goods like energy and food now soaring money velocity is certainly going to pick up.
And … salary inflation is fast becoming a fact.
which I translate into saying that the area under the red and blue curves should eventually equal... sounds like fun times. =)
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