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Money is just a reflection of production (i.e. scarcity of production). Due to market forces inertia, monetary supply can be manipulated, but you can't just sta
by atemerev 11y ago
Money is just a reflection of production (i.e. scarcity of production). Due to market forces inertia, monetary supply can be manipulated, but you can't just start printing money left and right without causing inflation; there is a hard science of doing it without disturbing market balance.
- acqq 11y agoWhich honest economist could have told you that there is "a hard science"? And by the way, western countries mostly don't "print" money to create it, the money creation "invisibly" happens in the financial sector.
- atemerev 11y agoI do work in the financial sector and somewhat aware of it.
- dragonwriter 11y ago> Money is just a reflection of production No, its not. The value ascribed to money is, of course, related to what it can be used for and how much of it is floating around, and production in the area where the particular form of money is the preferred medium of exchange is one of the factors that is relevant to that. And, perhaps the statement about governments not creating money meant that governments don't create value. Which would still be wrong, but in different ways.