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Comment by dQw4w9WgXcQ | Hacker News Reader

Thing is everything feels frothy because people haven't reset their mental model on what the dollar is actually worth. Over the past year or so the Fed took every pre-pandemic dollar in your pocket and made it worth about 70-80 cents. PPIA (Post-Pandemic Inflation Adjusted) the values on a lot of things are just fine.

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Even if there were a direct relationship between printing and inflation, this wouldn't make sense. Pokemon cards aren't up 25%, which is what you'd expect if dollars were worth 80% as much and everything rose to accommodate. Pokemon cards are up way way way more than 25%.

Why would that be the case? Inflation doesn't put 25% more dollars in the pockets of people willing to buy Pokemon cards. It's distributed differently.

Plus the existence of high inflation makes people demand inflation hedges way more, so why wouldn't they go up in price faster than inflation?

Why not the opposite then? Why wouldn't 25% inflation fail to lead to higher trading card prices? Very quickly, this argument becomes fully disconnected from any principle when you say that any amount of inflation can lead to any arbitrary price change, as it lets us blame literally anything on inflation.

There is (was) this concept of "cinema ticket based" inflation index that linked consumer level effective inflation to the price of one entry for a movie across the years. I wonder if anyone has published a somewhat large scale estimation of the "post pandemic inflation" adjustment from a collection of these (consumer level) frothy assets.

https://fred.stlouisfed.org/series/M1V

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