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by codedokode 1140 days ago
> No, by printing money, the government dilutes/devalues the money they already have. You still have 100 dollars. Theft would be that you have 98 dollars.

No, I cannot agree with you. If I had 100 dollars and then the government devalued them so that they are worth 98 old dollars then how is it different from taking 2 dollars out of my pocket? It is the same thing just called the other name. Of course, the government won't use words like "take out of the pocket" or "rob", they have scientific names for that like "monetary policy".

1 comments

What is “worth 98 old dollars”?

What you’re complaining about is the price of 12 eggs going up by $2.

It isn’t that you now have $98. It is that eggs are more expensive.

Of course the solution to that, is to print more eggs.

Part of the reason why inflation rarely goes down.

Let's put the eggs aside. The government determines an inflation target and tries to control the inflation (e.g. by changing interest rates, buying or selling securities etc). So why not set the target to 0%?

For example, this site [1] states that in recent years the inflation in Japan was about 0% on average. This proves that it is possible to keep inflation around zero. Maybe it is because Japanese government unlike Western ones has respect for hard-earned money of its citizens. It seems that Japanese government doesn't put its hands into citizens' pockets.

I have also read this article [2] but it offers no explanation for outstanding stability of Japanese economy.

[1] https://www.worlddata.info/asia/japan/inflation-rates.php

[2] https://hbr.org/2022/12/what-causes-inflation