If the US prints tons of money in secret, what affect would it have on inflation?
>>1179672
Printing doesn't mean shit, only when it's circulated does it cause inflation. The money could have come out of a time machine from fucking 1989, and it still wouldn't have an effect unless it was circulated.
Secondarily to this, money is not the same thing as cash/hard currency. Most money isn't even generated via the printing of currency, it's created via fractional reserve banking.
This stuff is macroeconomics 101.
>>1179681
What this guy said, except for the part about fractional reserve banking because that meme doesn't actually describe how it fucking works. Banks create "money" from nothing all the time irrespective of their reserve position at the central bank (the actual constraint is capital requirements).
Inflation will result from excessive demand (too much spending) which can happen whether the government spends some more money into existence or not.
>>1179672
>in secret
it will have absolutely no effect. Inflation is something that occurs based on peoples expectations of what the inflation rate will be.
>>1180351
>Inflation is something that occurs based on peoples expectations of what the inflation rate will be.
Highly debatable. Increases in the price level can come from virtually anything but usually it's supply side e.g. oil or food shocks. As long as the market is competitive there will be resistance to price increases.
So the question is, why would producers hike prices in response to some government pseudo-action that they don't even know about?
Of course they wouldn't. Zero effect whatsoever, not even a placebo. But it's important to ask these questions because voters don't think about fiscal policy and how it can be used nearly as much as they should.
>>1179672
almost none. there's about 5% actual money in circulation. The other 95%, which is created debt by banks, makes up for most of the wealth in the world. Inflation caused by 'printed money' isn't actually inflation by printed money, but by the state giving more credit to banks of which they can create significantly more debt.
