4 ms·
This explanation makes no sense, what you are describing is MORE money entering the system.
by Chriky 9y ago
This explanation makes no sense, what you are describing is MORE money entering the system.
- gbacon 9y agoMoney is not neutral. That is, increases in the supply of money and credit do not produce uniform increases in all prices. Otherwise counterfeiting would be a mere nuisance. More money entering an economy will certainly allow buyers to bid up prices (as with houses and college tuition). The question is which other prices are being bid up even more rapidly and which are remaining flat or declining on a relative basis. These sorts of problems are why both illicit and legalized counterfeiting are so pernicious.