Money may be printed but it causes inflation only if two conditions are satisfied: 1) the money stays in country 2) the money is used to buy goods or services.

Money may be printed but it causes inflation only if two conditions are satisfied: 1) the money stays in country 2) the money is used to buy goods or services. Our monetary system is based on a plan instituted 1oo years ago, before credit cards, electronic banking and and international market for finance. The Fed either changes the rate at which banks borrow money or buys financial instruments outright. This was fine back in the day when the main job of banks was making loans to people to buy homes (See It's a Wonderful Life). However today, money will will seek the highest ROI and stays in the financial system. We are seeing inflation of financial products (stock market bubble) despite record unemployment. Other weird things are booming house sales with record low interest rates. Until money is put in the hands of people who will spend it, we will never have inflation. NO MATTER HOW MUCH MONEY IS PRINTED.Today when I hear the word 'productivity' and 'growth' I realize it is not talking about the real world where there are mouths to feed and people who need a roof. Rather these words are talking about another entity, capital.