parttimeeconon

Published on Jul 07, 2020
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In many ways, 2020 resembles 2008-2010. Companies are going bankrupt, unemployment is high, and the government is firing up the printing presses to try and fix the economy. Despite all the money printing and quantitative easing, inflation remains below 2% as reported by official statistics. I believe that the relatively low inflation can be explained by dollars being sucked out circulation as consumers shift their preference to saving over excessive consumption as well as by the decreasing costs of production masking price increases.

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inflation stimulus why is inflation so low economics covid19

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