Bad Inflation Models Lead to Confusion - Daily Live 2.20.23 | E321

How do we know when price increases are due to inflation (money printing) or other factors?

Bad Inflation Models Lead to Confusion - Daily Live 2.20.23 | E321

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In today's episode, I talk through a back and forth I had on twitter with Luke Gromen. He refuses to have a coherent model for inflation, instead calling everything inflation. I try to clearly explain why fiscal spending and QE are not money printing, and why unusual fiscal spending with supply shocks make prices go up. Only some of it is money printing, with most of it being crowding out by pulling demand forward from savings at the same time as slashing supply. Enjoy.

Charts and images

Bitcoin weekly chart
Bitcoin weekly chart
Bitcoin weekly chart of 2019 rally with TD Sequential
Bitcoin weekly chart of 2019 rally with TD Sequential
Bitcoin weekly chart showing the effect of not having COVID crash
Bitcoin weekly chart showing the effect of not having COVID crash
Image from Lyn Alden's tweet
Image from Lyn Alden's tweet

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