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You can also create inflation by any number of different means. One very good way is to encourage consumer spending (not investment!) when most of what consumer
by moocha 18y ago
You can also create inflation by any number of different means. One very good way is to encourage consumer spending (not investment!) when most of what consumers are buying is manufactured in other countries then imported.
- lupin_sansei 18y agoSpending can't cause inflation as there's no increase in the money supply, and so prices can't uniformly rise as there's not the actual physical cash to pay all those higher prices.
- moocha 18y agoSure it can. both trade deficit and expectations of inflation play very important roles.