Anonymous asked in Social ScienceEconomics · 6 months ago

If I print money from my moms basement&spend $500 weekly on food&rent, how exactly will that affect the price of goods&services in society?

Will it cause inflation at all with such a small amount being put back into the economy? Or will it have zero effect on others?

3 Answers

  • Zirp
    Lv 7
    6 months ago

    If you are the only one doing it, and the counterfeit money is never recognised as such, it wouldn't do much. Some people would just have a little more money to spend.

    The idea that creating money always automagically causes enough inflation to nullify the effect is false. In 2018 (?) the European Central Bank create a trillion euro to cause inflation, and it failed!

    Somehow the people in charge ignore the fact that money landing in the pockets of those who have no reason to spend it (the rich) will not increase demand for goods or services.

    Distributing new money among the poor or the entire population would.

    Another thing the priests of economy miss is that more demand means merchants can sell more and have to discard less, which can make their product CHEAPER

  • Oiy
    Lv 5
    6 months ago

    The effects should be in sum $96,000 money supply a year or 500 x4 x12 x4. It's a multiplier effect. Your fake money will create more GDP and employment. But it will kill one thing, in God we trust. The effect is the same as what the classical saw the money from the sky or trees in the backyard.

  • You left out the very large expense of apprehending, prosecuting, and incarcerating you that honest people will have to cover. That's far from zero effect on others.

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