Government Spending Should Count Towards Inflation

This can be country-specific (as I pointed out in a much earlier post that the US is almost uniquely resistant when it comes to inflation, as the Fed issuing $29 trillion to deal with the 2007-2009 financial crisis didn’t lead to hyperinflation in the US), but Public spending should count towards inflation.

This happens partially through an increase in wages through government spending, but it isn’t a complete representation.


I wonder why the US is seemingly immune to high levels of inflation from government stimulus. It’s an interesting topic.

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One theory is that as the world’s reserve currency, the output of the entire world determines US inflation and not just US output. EconomicsExplained had a video on this.

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That makes sense, though I’m not sure Economics Explained is a good source for this stuff.

I’m not sure how good or bad it is in quality, but this does make some sense.

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