• ungoogleable@lemmy.ml
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      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
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      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
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        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
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          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.