Jens Nordvig Discussion — The big myth about money and inflation

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view?

This week we're discussing a blog post by Jens Nordvig entitled "The big myth about money and inflation."

https://moneyinsideout.exantedata.com/p/the-big-myth-about-money-and-inflation

Nordvig argues that despite the common wisdom, there is "no simple link between money and inflation." Is this true? Does it depend on how we define "money"? Does our understanding of money and inflation become more confused when we use the terms "money," "money stock," and "money supply" to mean the same thing?

Can we draw a simple link between money and inflation if we find another way to define "money" besides "money stock"?

Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday.

See our Discord server for ongoing discussion: https://discord.gg/3Z6hhcdN