2min chapter

The Compound and Friends cover image

12 Things Everyone Got Wrong About Inflation

The Compound and Friends

CHAPTER

The Role of Consumers and Companies in Inflation

We've had a deflationary economy for most of the past 30 or 40 years. Automation, technology, improved productivity, globalization, go down all the less and even 0% interest rate didn't cause inflation post financial crisis. But five or six trillion dollars later of fiscal stimulus, guess what? That's the key driver of inflation. The monetary policy becomes almost secondary to that and the unwind of the pandemic.

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