Are highrates inflationary? [MACRO ECONOMICS]

[Crusile]

Legit or no

Hint: Check out the Federal deficit? Rate hikes are pumping over $1 trillion/4% of gdp annually of interest expense into the economy. Effective debt/gdp has tripled since covid, magnifying the fiscal impact of the hikes.

 

[thereallegend]

Can you explain this shit more

 

[Crusile]

Can you explain this shit more

FED can only lower interest rates if inflation goes down, but high interest rates are inflationary at high debt-to-gdp ratios.
Biden will (soon) raise income taxes to tackle inflation.

 

[Crusile]

Dont let money supply theorists rewrite history.
Low m2 growth currencies were outperformed by high m2 growth currencies. (COVID STIMULUS)

 

[Chinacurry]

Jfl

 

[mogger123]

I don't trust what anybody says about macroeconomics tbh. There is just too much shit going on plus responses to COVID were unprecedented.

 

[Crusile]

indeed theres "too many variables" and its very convoluted but you have to pick a side.
Money supply theorists are never "indifferent" or "IDK :3" so they bigly outnumber everyone else.

 

[mogger123]

indeed theres "too many variables" and its very convoluted but you have to pick a side.
Money supply theorists are never "indifferent" or "IDK :3" so they bigly outnumber everyone else.

IDK :3

 

[thereallegend]

FED can only lower interest rates if inflation goes down, but high interest rates are inflationary at high debt-to-gdp ratios.
Biden will (soon) raise income taxes to tackle inflation.

So taxing the rich would solve inflation more than interest rates? I kinda agree with that. A lot of the inflation is due to price gouging.

 

[thereallegend]

Dont let money supply theorists rewrite history.
Low m2 growth currencies were outperformed by high m2 growth currencies. (COVID STIMULUS)

So who outperformed what? And what does Covid have to do with that?

 

[Crusile]

So who outperformed what? And what does Covid have to do with that?

The amount spent on COVID stimulus as a percentage of gdp.

currencies that grew the most in money supply outperformed other currencies in exchange rate value. measured in market cap (money supply * exchange rate index/value in USD

atm, Low debt-gdp countries are getting destroyed by harmful interest rates that aren't being offset by inflationary debt interest payments

 

[looksmaxxed]

So taxing the rich would solve inflation more than interest rates? I kinda agree with that. A lot of the inflation is due to price gouging.

the rich will get carve outs because politicians enjoy the same privileges and they wouldn't want these rules to apply to them. also, ignore everything crucile says, he's a bullshit merchant

 

[Crusile]

the rich will get carve outs because politicians enjoy the same privileges and they wouldn't want these rules to apply to them. also, ignore everything crucile says, he's a bullshit merchant

ngl everything I say is legit as Judy Hopps from zootopia. I am the best macro economist ITF (in this forum)