Discussion in 'Markets & Economies' started by mmm....shiney!, Jan 16, 2021.
You must be looking at a different 2022 to me.
I know! That was my reaction too haha.
Go gold!!! And anything else I've got a position in!!!
Now you get it!
Japan, decades of QE and no correlation to CPI. Introduce a supply shock and hey presto! Inflation. 2 charts for those that still don't get it.
Japan is a basket case, and is about as economically and demographically dissimilar to Australia as you can get.
By what measure?
It began its journey on the monetary/fiscal policy, demography, labour and wages paths decades before us. Current day Japan is the future for all Western democracies.
I'll just leave this here. For all of those that still don't get it.
And a chart comparing comparing Australia to japan from the Legatum Prosperity Index 2021.
If anyone is looking for an actual basket case, you don't have to go far down the list before you come to Argentina.
One metric is household (personal) debt, surely?
Happy Holidays y'all!
Australia's total credit to GDP declined over the 5 years from 2017 - 2022, I'm not sure it's a valid indicator therefore. But consumer credit certainly is a contributor.
It's complicated and not nearly as simple as Friedman would like to believe.
All of those charts look remarkably different to the one showing the CPI vs the RBA's balance sheet.
Joseph Wang argues that it was not monetary policy that caused inflation, it was fiscal policy.
Money money money:
This in turn fills up the coffers of business.
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