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i think the better question to ask is, whats the bigger contributor to inflation of prices recently...? gas prices? electronics supply issues? general supply c

• WalterBright 4y ago
  Creating trillions of dollars with the stroke of a pen and then showering that onto the economy. It's Supply&Demand at work. Create lots of money (add Supply) and the value of it goes down (Inflation). The same thing happens to the price of refrigerators if 10 million gets dumped on the market. The price for a refrigerator goes down.
  • andrekandre 4y ago
    from what i understand, when the fed does stimulus, they have to take out a loan/bond so as long as the "value" is canceled out by the loaned "debt" im not sure why its going to create inflation?
    • WalterBright 4y ago
      Because there is nothing backing it. Normal bank loans are not inflationary because collateral must be supplied to back it up. No collateral, no loan. For example, if you take out a mortgage, your house is collateral. The government just issues more debt to pay off the old debt.