|
|
|
|
|
by Dalewyn
1192 days ago
|
|
At a very basic level, more monies in circulation means each individual money is worth less than before. If each individual money is worth less than before, you need more monies to buy something. This is fine if you have more monies on hand to compensate, but generally this isn't the case for individual persons. Thus, you have inflation: The price of goods inflate(!) because the value of monies drops inversely to the monies in circulation. |
|
Creating money does not automatically cause it to circulate, as the ECB and others have demonstrated between 2008 and 2022.