While the size of the pie is important, so is the means of distributing the pie and the assurance that pie will be served tomorrow.
On hand hand, that's saying money doesn't matter, on the other hand, that's saying that, ignoring the coefficient, the "monetary economy" and "real economy" do the same things.
Spending the time to talk about both separately is acknowledging the relationship is complex. That is good.
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> Inflation is particularly hard on people who don't have negotiating power, and in general those people aren't doing great to begin with.
This is extremely misleading. Read your https://delong.typepad.com/kalecki43.pdf
- Inflation is good for debtors
- Real wages have gone up since 2019! The poorest in this country have done the best!
- Raising rate hurts poor people. Is there another plan to deal with this all?
- There is still pandemic disruptions; people should increasing go do social things (consumption back to services) and that would ease pressure on the bottlenecks.
As for raising rates hurting poor people -- inflation hurts poor people a lot too, especially if they're not in debt but are trying to save. Though to be fair, covid stimulus checks are one of the rare cases where increasing the money supply actually helps the poor because they're the ones who got the money, instead of banks, as I understand it.
If we did do something about inflation, what would it be? How would it it effect those poor whose real wage had been going up?