Is that right? I thought the general notion is that demand outpacing supply causes inflation. Doesnt printing money inherently increase demand? That’s why the Fed raised interest rates to fight inflation in the US, it slows money down by making things more expensive (in simplistic terms).
To MMT the printing of money is only inflationary when a country doesn’t have additional productivity. Thanks to digital products and services though l, production is nearly infinite. Others argue that all printing of money is inflationary.
The Fed only really has interest rates as a tool, so they raise it when inflation goes up. It can fight inflation by slowing lending, which thanks to fractional reserve banking is the primary source of money being printed/created.
Seems I need to read up more on the specifics of MMT. It feels like you keep contradicting yourself between your posts, but maybe I’m just missing something?
Is that right? I thought the general notion is that demand outpacing supply causes inflation. Doesnt printing money inherently increase demand? That’s why the Fed raised interest rates to fight inflation in the US, it slows money down by making things more expensive (in simplistic terms).
To MMT the printing of money is only inflationary when a country doesn’t have additional productivity. Thanks to digital products and services though l, production is nearly infinite. Others argue that all printing of money is inflationary.
The Fed only really has interest rates as a tool, so they raise it when inflation goes up. It can fight inflation by slowing lending, which thanks to fractional reserve banking is the primary source of money being printed/created.
Seems I need to read up more on the specifics of MMT. It feels like you keep contradicting yourself between your posts, but maybe I’m just missing something?