• RestrictedAccount@lemmy.world
    link
    fedilink
    arrow-up
    4
    arrow-down
    3
    ·
    6 months ago

    Sorry for the Economic pedantry

    Demand never really changed other than what would be expected from population and technology growth. The supply of money did change. The Fed has been quietly right sizing the money supply.

    If this continues to work, it could really mean good things for Americans in the future.

    • xmunk@sh.itjust.works
      link
      fedilink
      arrow-up
      7
      arrow-down
      1
      ·
      6 months ago

      The demand curve didn’t shift - I agree. That was sort of my point - in legitimate inflation we’ll see demand curves shift as price sensitivity adjusts to the new market comprehension of purchasing power.

      The actual amount of demand (or, like, buy orders if you prefer to avoid the term demand) absolutely did decrease though because we shifted the price point along that demand curve.