whiterock said:
FLBear5630 said:
whiterock said:
Remember the classical definition of inflation: when the money supply grows without a corresponding increase in production. here, we see evidence that money supply is growing without inflation = growth in production starting to match growth in money supply. This should strengthen as more and more of the trade deal monies flow in to build energy, infrastructure, and industrial plant.
Can you please post a link to the production numbers that offset this size money supply?
Not a formula from a textbook but real economic metrics dated today or there about.
they are widely available on the internet - the inflation numbers.
they are widely available in college textbooks - the definition of inflation.
This is a very simple economics 101 concept: inflation occurs when the growth in money supply exceeds the growth in production.
Ergo, when money supply expands and inflation does not, it means production is expanding commensurately.
That is one explanation, there are others that does not mean an increase in production. You are over simplifying.
Did we have higher productivity in some sectors? Yes.
Did prices come down for some goods? Yes.
Did prices for consumers come down? Some.
It is a mixed bag, it is too simplistic to say productivity is down or even that inflation is down? On what? Housing? No. Gas? Yes. Groceries? No.
It is a mixed bag. But, it seems to make you feel better. So, I will go along. Yay...
The US economy under Donald Trump | The Economist