
Money Aggregates, Debt, Pent-Up Demand, and Inflation: Evidence from WWII
From Federico S. Mandelman, Federal Reserve Bank of Atlanta. Very nice written paper. The car example probably looks familiar. Summary:The COVID-19 pandemic produced a massive decline in U.S. consumption in 2020 andswift fiscal and monetary policy responses. After growing at a rather steady 5 percentrate for decades, the money supply (M2) increased 25 percent over […]