CampingJosh
Master
- Dec 16, 2010
- 3,298
- 99
This is only part of the story.As you print more money the existing money has less value. Inflation then starts to kick in and can quickly spiral into hyper-inflation.
As more value is created in the world (gold mined, dishwashers manufactured, cheeseburgers grilled, etc.), the total value of everything goes up. If the value of everything increases and the money supply stays fixed, we get deflation.
That's a much worse problem than slight inflation.