Let's extend this.

Inject it at ground level. No banks. No taxing. Let's come up with a few scenarios.

Everyone invests it in Stocks. Everyone saves. Everyone invests in assets to start their own businesses.

>Everyone invests it in Stocks. Everyone saves.

Well, this wouldn't cause any inflation at all. It's basically just dead money. Either you own a stock or you save money in your bank account because someone bought your overpriced stock.

>Everyone invests in assets to start their own businesses.

This will cause inflation over the short term if there isn't enough labor available to do all investments. Interest rates would rise to encourage people to save their money.

There is also another form of inflation. There is enough labor available but the investment fails. You borrow $100 but only repay $80 (inflation adjusted of course). There is more money without enough production to back it up.

You can't invest money in stocks. Every time you transact with stocks, the person who is giving you stocks is getting your money, and so that money is not in stocks.

The only time you "invest" in stocks is during a public offering. And when a company does a buyback, that's a de-vestment. Over the last 20 years there has been more buybacks than stock issuances. The market is running dry.

Deflationary assets are exactly what r > g predict.

LOL