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by throw0101c
167 days ago
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> Price stability is overrated. Tell that to Biden/Harris. Dissatisfaction about prices helped get Trump elected (and now is causing him troubles with popularity as well). > Letting the government print money any time prices start to fall is literally letting the government profit off your back. The vast, vast majority of money that is "printed" is created by private banks through credit creation: * https://www.bankofengland.co.uk/explainers/how-is-money-crea... * https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625 And the money supply that is created by government(-ish) institutions is by central banks, which—in modern times—are generally operated independently from the government (except in, e.g., Turkey; and some folks want less independence). Central banks often work in opposition to what politicians want: just ask Powell. |
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Credit is a very thorny issue. Politicians and banks have promised people impossibly good and contradictory outcomes.
>And the money supply that is created by government(-ish) institutions is by central banks, which—in modern times—are generally operated independently from the government
In all cases the independence is an illusion. Conflicts over policy are manufactured to make the government appear more frugal than it is. Every fiat currency ever has gone to zero.