• ungoogleable
      link
      fedilink
      English
      arrow-up
      9
      arrow-down
      4
      ·
      1 year ago

      Increase in the money supply does not in itself cause prices to go up. There’s an indirect mechanicism but it’s not automatic.

    • agarorn@feddit.de
      link
      fedilink
      English
      arrow-up
      3
      arrow-down
      7
      ·
      1 year ago

      Tell me: if the Fed prints a one quadrillion dollar bill but looks it into a safe so that nobody can ever use it. How much inflation do we get?

      • planish@sh.itjust.works
        link
        fedilink
        English
        arrow-up
        10
        arrow-down
        1
        ·
        1 year ago

        How much does the money supply go up by? It can’t really count as supplied if it’s locked in a safe.

        • agarorn@feddit.de
          link
          fedilink
          English
          arrow-up
          3
          arrow-down
          1
          ·
          1 year ago

          Aha. So the sheer amount of money is not important?

          Just, as if the circulation speed is the crucial point. Damn. Good for you for noticing.