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.
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