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A comment on UK: Food inflation rises to 18.2% as it hits highest rate in over 45 years. Parent comment

Re:UK: Food inflation rises to 18.2% as it hits highest rate... by ars on Friday March 24, 2023 @05:29PM (#35295840)
Actually money from selling bonds does increase the money supply.

The government hands out that money, and people use it to buy more bonds, then the government hands out more money, and repeat. There is now more money in the world.

Yes, if you unwind everything it will go back down, but that's never actually done.

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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by RhodesianHunter on Wednesday March 29, 2023 @05:09PM (#35363700)
> Actually money from selling bonds does increase the money supply.

With a corresponding liability that will eventually remove more money from the system than was introduced. This is of course a dramatically different equation.

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