[eru]

Yeah, it's not actually real.

The central bank can always just keep printing enough money to keep nominal GDP stable, if they want. No matter how much people want to save.

[arcticbull]

They can’t actually, GDP is a function of supply and velocity. If you increase supply and it’s saved, velocity drops commensurately. This yields no change in nominal GDP.

[eru]

In that case, just keep printing money and buy up all assets in the world.

[arcticbull]

You clearly misunderstand. That's not what you proposed initially. Doing so would also not have an impact on GDP. Everything in moderation, as they say.

[eru]

I said originally that they can print money.

Sorry, that was a bit sloppy. When we say that eg the Fed prints money, we mean that they buy assets with newly created money.

Typically that asset is government debt. But they have been known to buy other stuff as well. And if they run out of government debt to buy, and nominal GDP still hasn't picked up, they can keep buying up the rest of the world.

Just to keep in mind: real GDP = nominal GDP - inflation.

Printing money like isn't expected to do much for real GDP.