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Originally Posted by Aarongavey
It is weird, Switzerland pumped a bunch of money into their economy during Covid and they do not have a large inflation increase. Same with Japan. It is almost as if there are factors beyond that that play into inflation.
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Both of those countries had more modest increases in money supply (about 7-8% in 2020). And like you say, there are other factors. Despite very low interest rates, Japan has had persistently low inflation and often dips into deflation. So while their current inflation rate is low by most standards, it's still the 2nd highest they've had in the last 30 years.
Switzerland is similar; their inflation rate has hovered between -1% and 1.5% for basically the last 30 years with an average of 0.4% in that time period. But right now it's at 3.5%, which represents a significant departure.