I wasn't aware of that discrepancy, but it makes sense to me. During Covid income was supplied to individuals and businesses without the concomitant production of goods/services. That income was in the form of money (as currency) created for that purpose ['currency' being money created for the central bank or central government to use for their purposes (accounted for by a shuffling of 'assets')]. It has since undergone multiplication in the form of income, as all money supplied to the economy does--and unlike money created when banks issue loans, currency is not returned to its point of origin to be 'destroyed': it is immortal money. It was that money-as-income added to the economy in the face of shortages of supply that set the stage for the burst of inflation that followed.

Stephen Yearwood
Stephen Yearwood

Written by Stephen Yearwood

M.A. in political economy (money/distributive justice) "Please don't confront me with my failures/ I'm aware of them" from "These Days," as sung by Gregg Allman

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