""Everyone's been writing about how oil prices are causing inflation. It only looks that way. The two are correlated, but the first doesn't cause the second at all," declares Hanke."
""Inflation was accelerating before the war, and it will keep accelerating after the war's over and oil prices fall," the big time contrarian told Fortune."
""It's at the point now where the genie is clearly out of the bottle and won't be put back in any time soon," Hanke stated."
"Hanke contends that it's growth in the money supply, not price shocks like the one we're now witnessing, that drives inflation."
Consumer prices rose 3.3% year over year in March, largely attributed to rising oil prices from Iran's closure of the Strait of Hormuz. Analysts predict inflation will decrease once the conflict ends. However, economist Steve Hanke argues that the true cause of inflation is the growth in the money supply, not oil prices. He emphasizes that inflation was already accelerating before the war and will continue regardless of oil price fluctuations, indicating a deeper issue with monetary policy.
Read at Fortune
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