3 ms·
> Printing an additional $100 trillion changes the length of the measuring stick, but it doesn't give us any more hardware. It actually does. Spending freshly
by Andrew_nenakhov 2y ago
> Printing an additional $100 trillion changes the length of the measuring stick, but it doesn't give us any more hardware.
It actually does. Spending freshly conjured money on hardware immediately kicks off production of new hardware and loads all the supply chain. Yes, this injection of new money into economy does eventually result in the inflation, but that will increase the costs of everything later. This lag between when you start spending and the adverse effects of inflation when the money will trickle down everywhere is the period when you actually gain from issuing new money, and the greater the economy is, the longer this lag will be.
- zooq_ai 2y agoAlso, inflation is not guaranteed at all. Let's say this hardware results in robots, which can produce near infinite amount of goods and services. That immediately puts downward pressure on prices. Not all printing money results in inflation. If you print money just about the same rate of productivity gain, you will not get inflation at all