Actually Fed real error has been raising rates to counter an inflation not caused by monetary policies.
SVB put all their investments in one bucket and it has been a very poor decision, really a rookie one
In more recent times, even more rapidly accelerating inflation began in July 2020, shortly following the $2.2 trillion CARES act from late March 2020. The "transitory inflation" narrative would begin in early 2021. The war in Ukraine began in February 2022, and doesn't even register as a visible data point in terms of rate change.
You have it backwards. Ending Bretton Woods didn't cause inflation. Inflation caused the end of Bretton Woods. If you zoom into the period before 1971, you still see plenty of inflation. If the government wants to stop its deficit that forces it to "print money", it needs to stop its deficit. Forcing the government to give a fixed quantity of a shiny yellow metal in exchange for a green piece of paper isn't going to help with that. All that does is ensure that the government will instantly give up all of its shiny yellow metals.
25 years to double.
CPI in 1980 = 84
18 years to double
CPI in 1999 = 168
19 years to double
24 years later is still hasn't doubled again. It's hardly a runaway freight train compared to pre 1971 is it?
1952 - 26
1972 - 41 (+58%)
1992 - 138 (+430%)
2012 - 227 (+773%)
2023 - 300 (+1053%) in 11 years
Now imagine we kept at the same relative rate of change from 1952:
1952 - 26
1972 - 41 (+58%)
1992 - 65 (+150%)
2012 - 103 (+294%)
2023 - 132 (+407%)
Your dollars being worth ~2.5x less than they would have been otherwise is huge, and largely explains nearly every graph from https://wtfhappenedin1971.com/ . This also ignores the fact that CPI does not accurately reflect change in costs of things like education, healthcare, and housing which have all inflated in cost far beyond the rate of nominal CPI. And all having the same common denominator of dramatic increases in government $ involvement, which has largely been enabled by the end of Bretton Woods.
I'd also add here that another child comment is completely correct. Inflation had already been increasing at an unacceptable rate prior to 1971, largely due to reckless spending. And that was a major reason we withdrew from Bretton Woods. But it was completely myopic. Instead of solving the problem, we simply gave ourselves room to make it even worse, which we promptly proceeded to do - much much worse. So now instead of solving a relatively small problem in 1971, we strapped a bandaid on it and gave a later generation an exponentially larger problem to solve. The point of this is that the delta from 1952-1972 is already far higher than it "should" have been. The "to the moon" rates from there are simply completely unsustainable.
Saying “the central bank printed money for years without inflation” as proof it’s not the cause is like saying a gas leak didnt cause the explosion because it’s been leaking for years.
https://en.wikipedia.org/wiki/2021%E2%80%932023_inflation_su...
When all you have is a hammer...