The Fed printed trillions of dollars out of thin air and flooded the market. More money chasing the same amount of goods guarantees inflation.
Yep — and near-zero rates kept borrowing cheap, so demand stayed hot while supply chains were still jammed. That made the price spike harder to dodge.
Supply shocks alone can't explain the run-up. Fed policy pumped money and demand, lifting prices across the board.
Inflation isn't only supply shocks; when the Fed floods the market, the hungry pay the bill while the powerful call it 'transitory'.
As I see it, supply shocks alone won't set prices. When the money supply expands, currency value falls and prices rise, even with abundant goods.
