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. @Lovey80
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.
And a chart comparing comparing Australia to japan from the Legatum Prosperity Index 2021. https://www.prosperity.com/globe/australia If anyone is looking for an actual basket case, you don't have to go far down the list before you come to Argentina.
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. Some charts: It's complicated and not nearly as simple as Friedman would like to believe. https://www.investopedia.com/articles/05/012005.asp
Joseph Wang argues that it was not monetary policy that caused inflation, it was fiscal policy. https://fedguy.com/credit-boom/ Money money money: hhttps://fedguy.com/mechanics-of-a-devaluation/ This in turn fills up the coffers of business. https://fedguy.com/mechanics-of-a-devaluation/ https://fedguy.com/credit-boom/
