Increasing money supply does not increase inflation. ---Putting the money to work via government spending does.I don't follow your logic on this one B1. I thought increasing the money supply would PROMOTE inflation.
To clarify, if money supply is increased Ten Fold, would that increase inflation?Increasing money supply does not increase inflation. ---Putting the money to work via government spending does.
I typed part of this incorrectly earlier. It should read----The only thing that can reduce inflation is the government spending and distributing less money.Here's my 2 cents----The Fed cannot control inflation by raising interest rates, they can only destroy the economy by doing that. The only thing that can reduce inflation is the government spending and distributing more money. Perhaps Powell has some indirect influence there since they can create money.
Only if it is put to use in the economy and the velocity of money increases.To clarify, if money supply is increased Ten Fold, would that increase inflation?
I typed part of this incorrectly earlier. It should read----The only thing that can reduce inflation is the government spending and distributing less money.
How can the money supply be increased without it being put to use in the economy?Only if it is put to use in the economy and the velocity of money increases.
If government wouldn't spend it.How can the money supply be increased without it being put to use in the economy?
Like that will ever happen.If government wouldn't spend it.