> Expanding on that, from 1800 to 1914 the US had zero net inflation. Zero.
This is simply false [1].
[1]: https://www.minneapolisfed.org/about-us/monetary-policy/infl...
This is simply false [1].
[1]: https://www.minneapolisfed.org/about-us/monetary-policy/infl...
Also, I don't mean exactly zero. It's an inconsequential difference spread out over more than a century compared with 1914 to today.
My take on it is that it's like physics - if you conduct an experiment and determine that the laws of physics don't apply, you've either made a mistake or our understanding of physics is all wrong. Which is much more likely?
My take on the 2009-2021 not causing huge inflation is there was something else going on. Two possibilities:
1. quantitative easing deferred the inflation to the future. There's been a lot of talk in the last few months about it putting the whole financial system onto another precipice.
2. That it did cause inflation - it's just that it compensated for massive deflation caused by the banking collapses.
Or maybe the 25% inflation we see today is just a delayed effect.
(Yes, I know the official rate is 7.5%. But everything I buy seems to have gone up 25%.)