OP is talking about the printing of M1 money specifically. Which is the creation of physical note, cheques and couple of other things. But basically it’s a measure of cash.
You can look at the M1 supply in isolation because most money doesn’t exist in M1 because it doesn’t earn any interest. If you look at the M2 money supply, which is a superset including M1 cash, then you see there has been very little change.
The reasonable conclusion then is the people have been withdrawing money from banks into cash, and liquidating other assets. So the total amount of money hasn’t increased, it’s just the amount of physical dollar bills that has increased, as digital money becomes physical.
So GP has a good reason to be annoyed. OP has cast as interest, but otherwise inconsequential (from the perspective of inflation) fact as being the sole explanation of changes in inflation.
You can look at the M1 supply in isolation because most money doesn’t exist in M1 because it doesn’t earn any interest. If you look at the M2 money supply, which is a superset including M1 cash, then you see there has been very little change.
The reasonable conclusion then is the people have been withdrawing money from banks into cash, and liquidating other assets. So the total amount of money hasn’t increased, it’s just the amount of physical dollar bills that has increased, as digital money becomes physical.
So GP has a good reason to be annoyed. OP has cast as interest, but otherwise inconsequential (from the perspective of inflation) fact as being the sole explanation of changes in inflation.