Comment by einpoklum
11 hours ago
Regardless of NVIDIA and LLM/AI, the claim that inflation is caused directly, or without-fail, by an increase in money supply - is not well founded. A significant money supply increase may very well have a tiny or possibly even negative price-increasing impact - depending on how money is supplied, to which elements and under what conditions.
It’s a fair point. Definitely depends on the how. I was figuring that adding $500B to a hot part of the economy while the rest of the economy shrinks might nudge a bit toward inflationary tendency, but at this point it’s hard to say what tenets of economics actually hold since the entire concept of “rational actors” went into the dustbin :)