> All that money chasing after limited supplies of goods such as cars, computers and furniture is inevitably bidding up prices, they say.<p>They forgot to mention stocks and other financial instruments. I believer growing them money supply by 40% over the last two years has primarily fueled asset prices. Only now its impacting consumer prices. The difference between now and 1970s inflation is that there was a lot less financialization back then. People didn't have access to equity markets to dump money into.<p>I think the question shouldn't be "is the money supply fueling inflation", but rather "where did the trillions of dollars created in the last 2 years go?" When you ask that, the obvious answer is asset prices and some consumer goods. Where else could it have gone? There's no plausible explanation about why the stock market is up 35% from pre-pandemic levels or why real estate is up a lot in cities that are still largely shutdown and work from home is ubiquitous