Question
(Regarding the fact that we would expect other countries to experience even higher levels of inflation if their central banks increased money supply by 40%.as
(Regarding the fact that we would expect other countries to experience even higher levels of inflation if their central banks increased money supply by 40%.as well as the role of the US dollar as the world's reserve currency) The Fed has increased M2 money supply by an unprecedented 40% over the past 2 years or so. While inflation has been running very high, it hasn't been proportionate to the increase in the money supply. The dollar may end up losing 20-25% of its value during this 2-3 year period but this is less than what the 40% increase in money supply would suggest. please tell me the reason for this.
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