Economist: Expanded Money Supply Has Fueled Inflation

Creighton University economics professor Ernie Goss, who specializes in Midwest manufacturing, blames the current inflation spike on two factors: federal spending and the Federal Reserve’s 35% to 40% expansion of the money supply since the start of COVID-19. The Fed’s broadest measure of the money supply — called M2 and shown on this graph — now stands at $21.8 trillion, up from $15.5 trillion in February 2020.

The U.S. Bureau of Labor Statistics has published this infographic showing the categories that have experienced the largest year-over-year hikes in final producer prices. 3/24/2022