Re:Why inflation is not a threat
by Supermancho on Sunday March 14, 2021 @02:03PM
(#26457295)
> That statement is easily refuted by running it backwards
Operations are not correct based on if they are reversible, nor are economic truths.
Re:Why inflation is not a threat
by aseerdbnarng on Sunday March 14, 2021 @02:34PM
(#26457582)
Economic truths are remarkably robust to reality or logic.
That statement is easily refuted by running it backwards: say reducing the amount of money in circulation via a huge once-off tax would thus have no impact on productivity which of course is silly.
>> If it's OK to print money to pay for some things why are you not doing it more? Why not make everyone a millionaire?
if drinking water is good, isnt drowning even better?
Creation of money either by expansion of private debt or governments running a current account deficit have always had the effect of goosing GDP figures. The 'free money' the central bank is creating is merely nominally swapping out the value of private-debts for equivalent nominal government debts. The money-creation is the net difference between the two and not equivalent to a blanket cheque.