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Who causes inflation?, page-118

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pintohoo

84,248 Posts.

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21/07/24

23:13

Post #: 74849304
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Originally posted by madamswer ↑

Well, the degree of government spending isn't the sole determinant, but the government represents the largest single component of aggregate demand in the economy, so ceteris paribus, when the economy is operating at full capacity then the delta in government contribution to demand is the inflationary force.

So, no one size fits all; it depends of the degree of tightness in the economy to begin with.

And right now, the economy is tight: demand is bumping up against supply so the actions of the government do influence the inflationary pulse.

They teach this stuff in the very first year of an economics degree.

Maybe you and your ilk should study a bit of it before waxing lyrical.

.

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oh, right

so you wrote this, which seems perfectly clear opinion,

but now you’re saying, well, no, not really

“There is more to determining inflationary outcomes than the actions of government alone.''
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