Since 2008, the Fed has tripled the monetary base: why is there so little inflation?

1 Answer

Answer :

answer:Because the value of shit has tripled as well during that time. Currency equal value of stuff. = No inflation. If more currency than stuff, then we get inflation. If less currency than stuff we get deflation. As long as Fed prints enough currency to match the new stuff that we create, no inflation. It’s probably more complicated, since I’m not exactly sure what the monetary base is—sounds like it’s the money actually out there as opposed to all the registered value in the economy (not sure of the technical words for this). But the principle is the same—as long as currency in all its forms is equal to the perceived value of goods and service in an economy, there should be no inflation.

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