I've been checking out news stories over the last few days about the rising price of oil. Lots of reasons given, primarily Syria, not one mention of QE as a cause. Now I'll admit that Syria has caused oil to rise from 105 to 110, but how did it get to 105? Why didn't it rise from 3 to 3.50? Oil was about $3 a barrel back in 1970 before we went off the gold standard. Why are most prices (not just oil) 20,30,40 times higher than in 1970? Do you Keynesians agree that by far the primary reason prices are so much higher now than 40 years ago is due to money printing?
Now I'm going to assume that even die hard Keynesians will agree that the main reason for this price inflation over 40 years is due to money printing. So if that's the primary reason oil went from 3$ a barrel to $110 a barrel, why wouldn't it be the main reason for it going from 3$ to $10 or $10 to $20 or $20 to $50?
My point is that it's much easier to dismiss the effect of QE on short term price inflation than long term price inflation.
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