3 ms·
It doesn’t as long as you’re financing it without using debt/printing new money
by gbear605 7y ago
It doesn’t as long as you’re financing it without using debt/printing new money
- Retric 7y agoDebt and printing money are two different things with very different impacts on inflation. Critically debt requires the money to already exist in circulation. Government bonds can act like currency, but can’t cycle endlessly. EX: Government in 2525 may need to borrow more money each day than currently exists, if they never print any money nobody can lend that much to them on a given day. PS: The velocity of money is one of those odd things that seems irrelevant in simple models but turns out to be really critical.