For money supply to be inflationary it has to increase demand or reduce supply for a given product.
It sounds neat but there’s little evidence of that occurring on more than a temporary basis during covid. But covid also caused supply shocks.
It seems that what happened is covid showed companies what they could get away with both because of decades of consolidation and because of new ways of colluding.
It sounds neat but there’s little evidence of that occurring on more than a temporary basis during covid. But covid also caused supply shocks.
It seems that what happened is covid showed companies what they could get away with both because of decades of consolidation and because of new ways of colluding.