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Do people actually believe that you can create trillions of new dollars without that having an impact on the value of each dollar?

• api 6y ago
  It can if other processes are effectively destroying dollars at a similar rate. Modern economies are credit economies with the majority of money in circulation being multiples of M1. If there's a credit crunch, vast amounts of money can be thrown into the fire very quickly. The Fed thinks we are having or are about to have a 2008-like deflationary credit crunch. If they're right, then we will not see massive inflation. If they're wrong, we may.
  • 34679 6y ago
    In your example, it still devalues the currency. The devaluation is just offset by other factors.
• fallat 6y ago
  Of course, why not? It's magic money. Top players will price things in such a way that inflation is still consistent so that their own money is still worth something.