Quote:
Originally Posted by opendoor
Only a portion of that ended up in the hands of individuals though. Most of the money (particularly in the US) was spent on supporting businesses, many of which used the money for things like stock buybacks and dividend increases.
And even then, the relationship between money supply and inflation isn't as direct as people like to suggest. Some countries with modest inflation (Israel is a good example) had huge increases in their money supply. On the other hand, places like New Zealand, the UK, Germany, the Netherlands, etc. had far more modest increases in money supply over the last couple of years than the US or Canada did, yet they're seeing high inflation.
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Firstly, many of the countries you listed as having moderate increases in money supply were some of the covid top spenders:
https://www.bbc.com/news/business-52450958
Secondly, Canada spent over $74 billion on CERB payments:
https://www.canada.ca/en/services/be...ms-report.html
CERB payments, other bailouts, and low interest rates most certainly had a major effect on inflation. There's just no debating that.