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I think her argument is that while QE on its own is not necessarily inflationary, as it increases base money supply but not necessarily broad money supply, fiscal deficits are inflationary due to them ending up directly as broad money. And… This does seem to be the case, I can’t think of any government spending that wouldn’t directly become broad money.

Note also that she’s not implying that therefore not raising the rates would reduce inflation. In fact she states clearly that this would lead to even more problems and picks on Erdogan for doing this.

Her argument seems to be that inflation is going to be persistent for the foreseeable future until something changes. E.g. commodities becoming cheaper due to external factors and/or debt to GDP ratio slowly getting inflated away as inflation persists and rates stay just below it.



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