Because we just went through a massive existential shock with COVID, in which the Fed took on a staggering amount of assets i.e. liquidity - and - we've had material global problems which cause major increase in the cost of goods and fuel.
In 2008 we had a 'banking crisis' but that was an 'accounting crisis' otherwise the economy was normal. We had to re-allocate.
With COVID, we had a real shock to the system, and then lasting shocks due to increased prices.
So both the money printing and regular higher prices are coming back to hit the economy.
In 2008 we had a 'banking crisis' but that was an 'accounting crisis' otherwise the economy was normal. We had to re-allocate.
With COVID, we had a real shock to the system, and then lasting shocks due to increased prices.
So both the money printing and regular higher prices are coming back to hit the economy.