Thread

1. im_down_w_otp · 1789589401 · focus · HN ↗

   It bugs me that the Fed has no mechanism to really deal with supply-shock driven inflation. Prices are shooting up, but not strongly correlated to money supply at the moment. They’re shooting up because there are a dozen or more entirely capricious and totally self-inflicted supply-shocks due to bizzaro tariff “policy”, disastrous military adventurism, and general erosion of the USD the prime vessel for international trade.

   The Fed tightening the money supply isn’t going to materially bring prices down, because the money supply isn’t driving the price increases.

   1. baxtr · 1789589811 · focus · HN ↗

      I thought about this as well. Maybe you have to slow down the entire economy to compensate for the missing supply.

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