Let's settle it once and for all, /pol/. What causes inflation ? What choose ye ? Monetarist: Inflation is always and everywhere a monetary phenomenon, too much money chasing too few goods, caused by excessive growth in the money supply.Austrian: Inflation is caused by central banks artificially expanding credit and lowering interest rates below their natural level, which distorts investment and inflates prices.MMT: Inflation is caused by spending exceeding the economy's real productive capacity, a shortage of real resources like labor, skills, energy, and materials, not by money creation itself, which is normal and necessary.Keynesian: Inflation is caused by excess aggregate demand, when total spending in the economy outruns the economy's capacity to produce, often near full employment.Post-Keynesian: Inflation is caused by distributive conflict, struggles between workers, firms, and other groups over income shares, often triggered by cost-push factors like raw material prices or wage bargaining, with money being endogenous and passive.New Classical: Inflation is caused by unexpected money supply growth that fools people temporarily, but under rational expectations, only erratic or unpredictable monetary policy causes real inflation.Public Choice: Inflation is caused by politicians and central bankers pursuing short-term electoral gains or bureaucratic self-interest through excessive spending and money creation, rather than by market forces.
>>542830244The monetarist and the Austrian are the same. But existence of cartels also causes economic distortion, which inflates prices for both producers and consumers.
>>542830244>MMT: Inflation is caused by spending exceeding the economy's real productive capacity, a shortage of real resources like labor, skills, energy, and materials, not by money creation itself, which is normal and necessary.>Monetarist: Inflation is always and everywhere a monetary phenomenon, too much money chasing too few goods, caused by excessive growth in the money supply.I think I subscribe to some combination of these two.
>>542830911Which is funny because Modern Monetary Theory and Monetarism occupy opposite poles within macroeconomics.
>>542830911Here's a channel that analyzes things from a MMT perspective https://www.youtube.com/watch?v=J1YYo-C498E
>>542831139>>542831349For context my vague/uneducated take is basically:Money, printing money specifically, is just a gauge or measure of the 'capacity' of a countries' economy: a country circulates as much money as it think its' economy will need to function based off of work and actual assets. Inflation as a result is a matter of "getting that number wrong": you printed too much money because you under or overvalued your economy, you ran out of something(s), undocumented work, that kind of thing. In this way: public debt is basically imaginary, it's a precautionary or an accounting thing at best, and paying taxes is effectively giving money back to the government (public workers effectively free labor). From my perspective (I'm prepared to be wrong) inflation today is largely caused by a combination: speculation, real and artificial scarcity, and/or foreign debt. By foreign debt I specifically mean the buying and selling of foreign currency, exchanging currency, and in some cases real material trade deficits (country x is selling movies, comic books, to country y in exchange for material goods or something - the exchange of a vague immaterial good for a real good causing a disruption in value).
>>542831891So with that in mind the only thing that really fixes, or has any substantive impact on inflation, is the "real capacity" of the economy. Again, I have no idea how correct I am: inflation being a serious problem in places like Canada, America, UK, Australia, is due to a lack of supply, and an overabundance or an exaggerated value of "make believe jobs". The only way to actually combat inflation is increase capacity, supply: more housing, more energy, more population, more jobs, more consumption.
>>542830244It's caused by BRRRRRRRRRR
