The Great Inflation

When I took my first Econ 50 class as a freshman in college, I struggled greatly. I was scared off because it didn’t make sense to me. The real world didn’t reflect the “laws” that I was taught. A couple of years later I tried again, adding economics to my dual major mostly because my father made me. I didn’t want to graduate in 3 years and said I had to add economics to my degree for him to pay for me to stay my fourth year. So I completed the requirements for Economics to be added to my International Relations major as a dual in one year. It was crazy hard, but it multiplied my understanding of the world. Once I learned to approach economics like a social science instead of a hard science like math, everything clicked.

Conventional wisdom would tell you that money supply causes inflation, yet our increased money supply has been accompanied by low inflation now and low projected inflation.


source: tradingeconomics.com

Now listen to this podcast. This is why I wish Behavioral Economics was around when I was in college!

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