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This is very wrong. Supply shocks also create inflation and governments can do little about that. The alternatives to fiat money such as gold standard currenc
by m0llusk 5y ago
This is very wrong. Supply shocks also create inflation and governments can do little about that. The alternatives to fiat money such as gold standard currencies convert growth into deflation which is economically and socially devastating.
- rmbyrro 5y ago> This is very wrong You mean governments stop printing and borrowing money indiscriminately does not stop inflation? > Supply shocks also create inflation I did not say indiscriminate money printing by governments is the only source of inflation.
- ClumsyPilot 5y agoYou answered your own question - if money printing is not the only source of inflation, then inflation will continue even if printing stops. Most money is created by private banks, and velosity of money affect inflation more than money supply does