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If the government printed billions of dollars to buy bananas, it would show up in prices all around the economy as the money circulated. At full employment --
by QuesnayJr 7y ago
If the government printed billions of dollars to buy bananas, it would show up in prices all around the economy as the money circulated.
At full employment -- which we were at up until a week ago -- the only thing flooding the market with money can do is cause inflation. We didn't have an inflation, and interest rates were still incredibly low.