3 ms·
Printing money only leads to inflation if you are full employment/resource utilization. Otherwise the money just facilitates transactions that wanted to occur a
by consz 7y ago
Printing money only leads to inflation if you are full employment/resource utilization. Otherwise the money just facilitates transactions that wanted to occur anyways but didn't have the financial capital to do so; you can always hoover the money back up through taxes afterwards without realizing hyperinflation. Why do you think Japan, Europe, China, US, etc. have been able to print such a significant amount in the last 10 years without the corresponding inflation? Why is the US pushing a 2T stimulus bill without worrying about "how will they pay for it" during a credit crisis today?