@heimbergecon This paper does not model money supply at all. None. 1/ Many economists still buy the IMF’s story that post-2020 inflation was all “supply shocks.” But here’s why that’s wrong—and how money shocks fooled their models. 🧵 @heimbergecon 2/ First: M2 money supply rose over 40% in 2020–2021—the biggest jump in modern history. That’s a massive demand shock. But the IMF/Dao et al. paper? Doesn’t model money at all. Not M2, not interest rates, nothing.