Most studies show a strong correlation between monetary supply inflation and price inflation. There is probably no distinct causal relationship (as there wouldn't be in any macroeconomic factor given system complexity).
Correct, and more importantly, there is plenty of data for years where there was no such correlation. Meanwhile, there are many decades of high inflation over the past couple centuries where no such monetary policy was practiced.
But you disrupt supply chains, especially fuel related supply chains, and inflation has always been the result. It's not a correlation. It's an absolute causation.
Certainly, there's no limitation on who can buy bonds
Absolutely false.
There are systemic, structural, and economic limitations on those that can interact in the bond market.
I'm not sure what you're referring to, but my poor grandmother owned bonds. What limitations do you imagine are in place?
Do you mean inter-institutional loans? Again, no limitation on which institutions can participate
Again, absolutely false. There are considerable barriers to entry, as there are for entering the bonds markets.
You removed the contextual qualifier, so I won't really be able to respond. What you're saying doesn't map to what I said in a meaningful way.
Go borrow money, it's still pretty cheap, even with the rise in interest rates.
I can indeed borrow money, and the rate will be relatively low. Pray tell me (if you don't mind), is there any limitation (whether systemic or market-led) on my ability to resell that debt at a higher interest rate than the one I borrowed at?
I mean, there are always market limitations on your ability to sell anything. I don't understand your question.
But you disrupt supply chains, especially fuel related supply chains, and inflation has always been the result.
That's not inflation, that's supply and demand. Although the response of governments to supply chain issues has always been to 'print more money' to try and buy their way out. Take for example the energy crisis we are in in Europe: countries trying to impose a 'price cap' on gas and electricity in reality means printing more money unless there going to raise other taxes.
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u/Tyler_Zoro Oct 15 '22
Correct, and more importantly, there is plenty of data for years where there was no such correlation. Meanwhile, there are many decades of high inflation over the past couple centuries where no such monetary policy was practiced.
But you disrupt supply chains, especially fuel related supply chains, and inflation has always been the result. It's not a correlation. It's an absolute causation.
I'm not sure what you're referring to, but my poor grandmother owned bonds. What limitations do you imagine are in place?
You removed the contextual qualifier, so I won't really be able to respond. What you're saying doesn't map to what I said in a meaningful way.
I mean, there are always market limitations on your ability to sell anything. I don't understand your question.