The massive growth in narrow money (the monetary base/bank reserves) has not yet produced inflation because the relationship between narrow money and the broader aggregates (M1, M2) changed, so broad money has not exploded; this is consistent with monetary theory, and a recovering-slowly Phillips-curve dynamic further dampens inflation.

causalpending

Speaker

John Taylor

Evidence Quote

we were taught well money supplies what determines inflation if the growth of money supplies too fast is gonna be inflation had this massive growth in reserves I don't have any inflation

Source

John Taylor on the State of the Economy 07/19/2010EconTalk
Created: 6/15/2026, 9:17:28 AM

My Notes

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