All Questions
Tagged with money-supply inflation
65 questions
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Why doesn't the government create money, spend it for free without interest, and recollect it with taxes?
I was thinking of a better monetary system, and here is what I came up with. I'd like to know if this would work, as I see if offers many advantages over our debt-based monetary system today.
A new ...
- 149
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3
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Basic Reason of Why the Money Supply Needs to Increase? [duplicate]
Hello, all. So I am trying to gain a thorough understanding of why the Fed, or any other Central Bank, needs to keep pumping money into the economy as it grows. My question is not asking why ...
- 125
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2
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How exactly does money supply causes inflation?
I think there's consensus among economists that a growth in money supply (I'm not thinking in any particular type of money supply) causes inflation (CPI), at least, in the long run.
What I'm ...
- 133
-2
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1
answer
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Causality: Money supply and prices
When there is an increase in price level, real money supply decreases and raises interest rates.
In a similar situation, when money supply decreases, interest rates increases, consumption decreases, ...
- 123
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2
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Fisher Effect vs Quantity Theory of Money and how an increase in the money supply lowers interest rates?
I was under the impression that in the long run, a larger money supply resulted in lower interest rates. According to the Quantity Theory of Money, see below figure, an increase in the money supply -> ...
- 111
2
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3
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Why not just look at the money supply to calculate inflation?
I see a lot of debate about the right measure to use to determine inflation -- apparently the CPI overstates it, etc. Why not just subtract the GDP growth rate from the money supply growth rate (or to ...
- 21
2
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2
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648
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What happens if money supply grows more slowly than inflation?
I'm thinking the case of Argentina. In 2016, prices raised about 40% but according to the central bank of Argentina, money supply grew only 30%. Is this going to have an effect in 2017?
What could we ...
- 133
2
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2
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Can a government or central bank work to reduce inflation without hiking interest rates and causing the currency to appreciate?
Since trying to lower inflation will have some undesirable consequences, such as currency appreciation, which hurts exports, should governments and central banks keep hands off on inflation?
But ...
- 131
2
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2
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142
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Demand-pull inflation intuition
According to the theory, monetary growth increases inflation.
But how do companies know that there is more money in the economy now than before?
- 133
1
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3
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Why do increase in firms profit margins cause cost push inflation?
I read somewhere that this was the case. I get what profit margins and cost-push inflation are, but don't see how increase in marginal profit causes cost-push inflation? Also, how does increase in ...
- 675
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2
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How do excessive foreign reserves cause inflation?
I have studied that accumulation of foreign reserve has the potential to raise inflation levels in economy as the money base increases (= domestic currency + foreign reserve increases) and if it ...
- 1,104
2
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1
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Is Quantitative Easing an asset-swapping or money-printing exercise by the Federal Reserve?
Shortly after 2008, there were prominent commentators such as Jim Rogers who called Ben Bernanke an idiot and condemn him for printing money. However, there were also articles that suggest ...
- 545
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1
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How could monetary policy be affected if cash "gifts" to consumers were more frequently used?
A few years ago in the US, everyone who filed taxes received a check for $1000.
If this method of inflation was logistically more feasible, how could this be used in monetary policy, and what ...
- 153
4
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2
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What effect would raising reserve requirements while printing money have?
It is generally accepted, that printing money will be inflationary, as it increases the money supply without a corresponding real growth of the economy.
At the same time, if the central bank ...
- 2,036
9
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3
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Inflation, cause or result of monetary emission?
The argentine economist Fernanda Vallejos, while trying to protect the government because of the inflation, the following:
Inflation is not the result but the cause of monetary emission. As
there'...
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