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No. But if both persons are productive then the Fed is more likely to inject another dollar or two into circulation.
by SubiculumCode 8y ago
No. But if both persons are productive then the Fed is more likely to inject another dollar or two into circulation.
- ryandrake 8y agoWhen the money supply increases, the pie isn't growing: There are just more, smaller slices available.
- SubiculumCode 8y agoNope. I'm pretty sure the world is more wealthy by almost every economic measure than it was two centuries ago.
- antonvs 8y agoThat's not how it works at all. The point of growing the money supply is to match the growth of wealth in the society. The reason central banks have target levels for inflation is it's one way to ensure they're doing that correctly.