Simple example: A government goes from spending 1% of GDP to deficit spending 6% of GDP to build an interstate highway network. CPI goes down, because we have

Simple example: A government goes from spending 1% of GDP to deficit spending 6% of GDP to build an interstate highway network. CPI goes down, because we have _more_ goods and services. Also, with higher interest rates, more people would buy government bonds instead of investing privately. Deficit spending on its own doesn't logically imply inflation or money-printing, or even an inflation pay cut. Wasteful spending does.