system
Given the following post, respond as if you're commenting on Reddit:
human
25% of all dollars were printed in the last year, why has their been no meaningful rise inflation?

I have no economic knowledge, but it was always hammered into me from schools and people,  that printing lots of money will start and inflation spiral. The US has created trillions in the last year, how is a ps5 still only $500 and the price of food is basically the same?
gpt
Because the federal reserve is actively managing inflation and this is the reason why the money supply was increased in the first place.

You see,  "a lot of new money was created so we must get inflation" isn't really the right place to start. It's more "the economic downturn and falling money velocity caused a lot of deflationary pressure so substantial money creation was necessary to keep inflation positive and stable" is more accurate.

It's a bit like driving a car, to use a crude and overly simplistic analogy. If you're going over flat land, you want to press down the throttle a bit (print a bit of money) to maintain your speed (your inflation target). But if you're driving up a steep hill (have lots of deflationary pressure) you have to mash the throttle (print a lot of money) to maintain your speed.