“Why can’t the government just print more money?” – NOT such a silly question!
Saturday, August 28, 2010
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“Why can’t the government just print more money?” – NOT such a silly question!
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I think printing money is fine as long as their is value behind it. So printing money to finance a public bridge is fine if the bridge adds atleast an equal value to society.
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- Finance guy
Very true. I usually teach it money supply changes in relation to the Equation of Exchange---any increase in money supply SHOULD have a corresponding increase in nomimal GDP because production (Q) increased, not price (P). Of coures V could decrease instead but I think the increase in production (bridges included (useful ones!!)is more desirable. Thanks for the reply!! :)
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