📈Increase in the money supply and high asset levels do not lead to inflation.
💰The velocity of money is decreasing, indicating that people are not spending.
🏦The Federal Reserve's policy of increasing interest rates and shrinking the balance sheet is not supported by the data.
📉There is no proof that high asset levels and M2 lead to inflation.
💸Inflation is not caused by hoarding, but rather by the increase in the velocity of money.
Does increasing the money supply lead to inflation?
—There is no direct correlation between increasing the money supply and inflation. The data does not support this claim.
Is hoarding money the cause of inflation?
—Hoarding money is not the cause of inflation. Inflation is caused by the increase in the velocity of money, which is currently decreasing.
What is the Federal Reserve's policy on interest rates?
—The Federal Reserve has indicated plans to increase interest rates as part of their overall policy. However, this policy is not supported by the data.
Is decreasing the balance sheet necessary?
—The decision to decrease the balance sheet is a policy choice made by the Federal Reserve. However, there is no evidence that shrinking the balance sheet is necessary or beneficial.
Is there a risk of hyperinflation?
—Based on the data and current trends, there is no immediate risk of hyperinflation. Inflation is currently low and there is no evidence to suggest a sudden increase in inflation.
00:00Massive inflation is not caused by an increase in the money supply and high asset levels.
02:36The velocity of money is decreasing, indicating that people are not spending.
06:10The Federal Reserve's policy of increasing interest rates and shrinking the balance sheet is not supported by the data.
09:24There is no proof that high asset levels and M2 lead to inflation.
10:32Inflation is not caused by hoarding, but rather by the increase in the velocity of money.
