Inflation follows M2 with a lag.
Best way to deal with inflation is controlling M2 not interest rate.
The US Fed is based on 120yr old outdated know how and control interst rate to fix everything....a slash and burnt way to get things done. By the time they finish raising interest rate the American citizen will be half dead due to his debt.
China uses the superior bank reserve ratio control to address M2 expansion and contraction.
It's like using calculator vs using Computer with AI.
Best way to deal with inflation is controlling M2 not interest rate.
The US Fed is based on 120yr old outdated know how and control interst rate to fix everything....a slash and burnt way to get things done. By the time they finish raising interest rate the American citizen will be half dead due to his debt.
China uses the superior bank reserve ratio control to address M2 expansion and contraction.
It's like using calculator vs using Computer with AI.
![[Image: NiESR8U.jpg]](https://i.imgur.com/NiESR8U.jpg)
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.