2 ms·
> If the government doubled the money supply instantly, for instance, the real GDP would increase by (say) 5% immediately because people would activate producti
by dnautics 6y ago
> If the government doubled the money supply instantly, for instance, the real GDP would increase by (say) 5% immediately because people would activate productive capacity that was not there.
Perhaps we should increase the money supply by 300%, to unlock a 15% gain in productivity!!
Or, they might get pissed off and revolt, tanking the economy by 75%.
One can never really be sure.