3 ms·
> Printing 10^8 dollars would not quite do it because of the inflation that would cause, but if it printed 1.11 x 10^8 dollars then the government would have en
by OscarCunningham 6y ago
> Printing 10^8 dollars would not quite do it because of the inflation that would cause, but if it printed 1.11 x 10^8 dollars then the government would have enough to buy 10% of the inflated economy.
This makes it sound like you're treating 'size of the economy' (GDP) and 'size of the economy' (amount of money) as equal. But they're not. In the US, GDP is about $22T/year and amount of money is about $7T (so the average dollar is spent about 3 times a year). So if the government wanted to spend 10% of GDP, it would have to print $2.2T which would cause about 2.2/7 = 31% inflation. In fact the government spends 35% of GDP, so inflation would be around 100%. The value of the dollar would halve every year.