Comment by andyferris
7 months ago
There was a specific and particular expectation (and even patience) for inflation to drop naturally as the supply chains again reached equilibrium after Covid.
Russia's invasion of Ukraine however caused a whole bunch of economic inputs like energy and fertilizer to spike, and central banks world wide didn't want economies to "get used to" constant high inflation rates, causing a perpetual problem.
Work from home was the wrench in the governments plan. If the pandemic happened in 2000, the stimulus would have been needed, as the tools for remote work were way too poor back then.
But instead all the productivity workers just switched to their home office and things just kept working. The stimulus should have been shut off in early-mid 2021 when this was abundantly clear. But the government let it run because people were so jubilant in the money shower.