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And how do I verify that the money printed is not more than the increase in productivity ? Effectively stealing from my productivity through price inflation ?
by sp4ke 9y ago
And how do I verify that the money printed is not more than the increase in productivity ? Effectively stealing from my productivity through price inflation ?
- Spivak 9y agoFirst, that already occurs to the tune of of about 2% annually. The Fed aims for about 1-2% inflation annually to encourage investment. But to answer your other question, in order to verify this you would need a complete-ish picture of the entire economic output of the country: how much it grew (Growth Rate), and how much currency was destroyed (Destruction Rate). With those metrics you can determine how much currency you need to print.