The main reasons why inflation and actual policy are more complicated than the “print money → hire people → buy votes → repeat” cycle include:
1.Multiple factors drive inflation, Not just government spending. Supply chain disruptions, energy prices, global demand, wages, and consumer behavior all affect inflation.
2.Central bank policy matters, Interest rates, reserve requirements, and monetary policy tools influence money supply and inflation in ways that aren’t captured by a simple cycle.
3.Private sector dynamics,Businesses, investors, and households respond to incentives in unpredictable ways, which can amplify or dampen inflation.
4.Lag effects, Fiscal or monetary actions don’t affect the economy immediately; sometimes inflation reacts months or years later.
5.Global influences, Exchange rates, imports/exports, and international capital flows can have big impacts beyond domestic hiring or spending.
