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But those extra dollars aren’t with consumers. Otherwise, yes. That’s where the money supply causes inflation argument falls apart — at least for this case.
by dd36 2y ago
But those extra dollars aren’t with consumers. Otherwise, yes. That’s where the money supply causes inflation argument falls apart — at least for this case.
- greyface- 2y agoMaybe not at T=0, depending on how you look at money creation. But the "extra" dollars, wherever they originate, will eventually be spent, and will eventually diffuse out to every part of the economy. We're not printing trillions of dollars, locking them in a treasure chest, and burying them deep underground so that they may never move.