3 ms·
Economically speaking, increasing base money supply (giving money directly to people) does in fact increase inflation Well, sure, if you give a bunch of people
by goatinaboat 6y ago
Economically speaking, increasing base money supply (giving money directly to people) does in fact increase inflation
Well, sure, if you give a bunch of people some money and they all decide to spend it on re-doing their homes at the same time then the prices charged by local tradesmen will probably go up, then correct themselves again when the peak demand passes. I'd argue that's not a bad thing in the sense that real work is being done, and the money is circulating in real goods and services - because if value is actually being created then there is something backing the new money.