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You don't really “run through it” since the money is still there (unless the central bank pulls it out). But you are right that eventually the economy would gr
by refurb 4y ago
You don't really “run through it” since the money is still there (unless the central bank pulls it out).
But you are right that eventually the economy would grow enough to “soak up” the extra money and it wouldnt be so inflationary.
- jedberg 4y agoYou run through it by having it move to the top, where it sits. $100 in the bank account of someone who only has $200 will be far more active in the economy than someone who has $2,000,000. Or $2B.
- refurb 4y agoUnless you're putting money under a mattress, money in the bank or investments still circulates and creates inflationary pressures.