I guess when you get devastated by decades long deflation which erodes your position in the world, you don’t worry about inflationary ramifications.

Japan has been using an equivalent of MMT for many years now? They were already printing yen to cover their budget deficit and more?

Don’t they teach Economics 101 over there?

Japan's current inflation rate is 3%. The primary problem is raw materials that need to be imported for businesses.

Having said that, BoJ needs to watch closely for a GBP style run. It's probably more important they say they're watching than they do anything right now tbh.

Monetary "policy". USA is sitting at 8% (manufactured/pretend) inflation now and the whole country is about to go into a depression because "Fed" is being reckless with their authority. Coming soon to a country near you...

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They aren’t being “reckless with their authority” covid happened and they had to react to an impossible situation, they overshot it and now need to compensate the other direction

Reminds me of what I heard on Youtube Short just half an hour ago. A guy said that nearly 40% of the US Dollars that exist in the whole world have been printed in the past 13 months alone. Capitalism capping at its finest.

they're being reckless. interest rates are going to 9% by eoy...save this then tell me later...

And despite that the dollar index is at a 20 year high. Currencies around the world are in a lot more trouble.

and for the US export it becomes problematic if the DXY goes up too fast.

Yeah that’s because we are now in a wage-price spiral and the only way out of it is to raise interest rates and temporarily spike unemployment. Do you have a better idea?

What are you even smoking? reacted to an impossible situation? You mean they didn't know that printing 4+ trillion in less than 2 years themselves and that Inflation would not happen and they couldn't foresee their own stupidity?

There was zero control in the way they played out their hand. They were reckless extremely reckless. Everyone at the Fed should be replaced.

We Might of had a small recession with covid. Now we might have depression instead. This one would 100% be caused by the Fed and this would affect the entire world due to how intertwine the USA is with the entire world. This is real Blood on the Feds hand themselves not some bankers/capitalist/criminals.

There are 4 types of economy: advanced, developing, Argentina and Japan

Spending money to fight inflation...

Same nonsense in Germany.

How about only supporting the people who actually need support? Nah just spend hundreds of billions, thus making inflation even worse.

Wouldn't be surprising, because old money that's worn down constantly gets cycled. This is one of the largest uses for newly printed money.

Are you kidding me? Covid caused one of the biggest drops in economic output we have ever experienced. Maybe you didn’t notice all the businesses closed?

And yeah people in the Biden administration like Larry Summers warned him about overshooting it and getting runaway inflation. He chose not to listen to them. The US isn’t alone here, most nations did exactly what we did to prevent a global depression

For M2 money supply, that might be right. That’s because that money is an aggregate of the deposits in average (poor) peoples bank accounts is what constitutes M2. Corporations through a kinipchin fit to capture this cash into their coffers.

Past stimulus was directed toward M3 (rich people and corporate deposits). M3 stimulus doesn’t cause inflation because ultra-rich people don’t actually spend money (ie. Trickle-down is bullshit)

if spending made inflation worse then japan should have earth shattering, empire ending inflation since the 90s. but japan is one of the most deflationary places on the planet alongside south korea and eventually china

clearly you know nothing about japan

japan has "printed" like a quadrillion yen, just like china has "printed" like a quadrillion yuan. but japan is one of the most deflationary places on the planet and china is going to join them eventually. "money printing" causing inflation hasnt been a thing for the last like 50 years

They actually suffered deflation for a long period of time, which hurt investment from what I've read. In this case some inflation might be good, which is strange to say.

basically every thread on the subject is inundated with "I am economist and Japan stupid"

That's not going to work out to well if it's not targeted.

Why?

Keep those money printers pumping

Spending doesn't make inflation worse. Printing that money you're spending makes inflation worse.

I appreciate your explanation, but the more pressing question now is why the fudge am I being downvoted by "you got free-speech" Americans? 😭 I was telling a simple fun fact.

Because there's no spending in Japan. Japan has lowest broad money growth since 90s.

Japan central bank is just straight up buying bad bonds and stocks from public and private sectors to keep them afloat. BoJ cannot do anything with these on their books. These are now essentially out of economy.

>"money printing" causing inflation hasnt been a thing for the last like 50 years

Seeing the CPI numbers in US since 2021....

Been printing money nonstop since 2009, so that might not be it exactly.

If they don't spend spend money then why would they need it in the first place.

Okay, so judging by the comments here, most people support insane money printing. Humanity is doomed indeed.

Better get some gold...

Yes I missed the part where US had 0 inflation since 2009. Oh wait....

Spending the money means higher debt. Inflation is fought with higher interest. You think it is a good idea to have high debt when interest is rising?

And when the government gives the average Joe more money, then this will make inflation worse in our current situation. The current inflation is a result of there being high demand, lots of money but not enough production/transport to meet the demand. If the people had less money, they would buy less. Thus demand would shrink and inflation would be reduced. But with more money, people will want to buy even more shit.

I wish I could upvote this a million times.

Edit: u/r488191 is correct though. You both are. If you spend the money you already have it won't affect inflation as the amount of money in circulation stays constant. But if you print (like u/r488191 pointed out) or borrow (like you pointed out), the supply of money grows and so does inflation.

Great question.. To be more specific, they don’t spend money on anything that stimulates the economy in any meaningful way. They use money as a tool to make more money and buy political influence, to ultimately make more money and gain even more power.

Right, but demand is also an issue. The state using the money to reduce debt will result in less demand than giving money to everybody.

I am not against support from the government by the way. It just frustrates me how undifferentiated this support is. Here in Germany, literally every citizen gets this inflation support, including freaking millionaires.

Agreed.

Are they mocking someone doubting their Japanness