Will Money Printing Cause Inflation?

Posted September 8, 2020 by Michael Batnick

We’re spending a lot of money trying to beat the virus. From vaccine research to economic relief, $2.7 trillion has been added to our tab.

And now for the first time since World War II, our annual spending is larger than the entire output of our economy.

Whenever the growing deficit comes up, you can always count on the following concerns:

We’re going to run out of money

We’re not going to be able to pay this back

We have to balance the budget

We’re destroying the value of our dollar

This is going to cause inflation

A few months ago, Ben Bernanke, former head of the federal reserve was asked,

“The money we’re printing now, will it cause inflation?”

His response, “No.”

It’s becoming more and more accepted that the line we used to draw between money printing and inflation might have been done so with invisible ink. In Stephanie Kelton’s The Deficit Myth, she said, “A deficit is only evidence of overspending if it sparks inflation.”

To continue reading, please go to the original article here:

https://theirrelevantinvestor.com/2020/09/08/will-money-printing-cause-inflation/