politics

I don’t see how inflation picks up with this much demand driven deflation.

It’s counterintuitive but there is a term for it (stagflation) and we’re beginning to see it take hold.

Right. I know that tariffs are generally deflationary because they reduce demand. However, for whatever reason, inflation is still ticking up right now and GDP has gone negative. Whether that continues is the question. 

Could the money supply have an outside impact?

Stagflation assumes GDP is stagnant and inflation is rampant. If deflation sets in neither will be true. It’s the unexpected card but it’s something I’ve been seeing in the economy since 2022