Your hunch is correct. The constant cry of “money printing!!!!” Is an oversimplification.
It’s not totally wrong mind you, but as we all know, prices are set by supply and demand.
An obvious example that I think a lot of people can easily connect with is the fact that globalization has been deflationary (it’s driven prices down), and that isn’t a monetary phenomenon.
As someone sympathetic to MMT, the solution in my opinion has less to do with the fed, Congress needs to tighten fiscal policy.
It’s not totally wrong mind you, but as we all know, prices are set by supply and demand.
An obvious example that I think a lot of people can easily connect with is the fact that globalization has been deflationary (it’s driven prices down), and that isn’t a monetary phenomenon.
As someone sympathetic to MMT, the solution in my opinion has less to do with the fed, Congress needs to tighten fiscal policy.