3 ms·
you've got the value chain backwards. money isn't printed and then that magically becomes the value of the economy. the money supply is managed so as to try to
by clairity 6y ago
you've got the value chain backwards. money isn't printed and then that magically becomes the value of the economy. the money supply is managed so as to try to match the decentralized and organic value created by us in the economy.
that causal chain limits how much money can be printed without adverse effects (and at the extreme, economic and political collapse). if we generate ~$1T/mo of value, printing a couple billion extra here or there gets drowned out in the estimation error of the size of our value creation. we print an extra $1T/mo and we have start to have serious problems.
so money is not limitless. it's bounded by our collective product.