Quantcast Simple way to control inflation/deflation? - Aussie Stock Forums

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  1. #1

    Default Simple way to control inflation/deflation?

    Why doesn't the government simply print / destroy money to keep inflation at 2%? Why does it need to borrow money when it can print money? Isn't the end result exactly the same?

    Yes - I have been watching a few conspiracy theory videos :p

  2. #2

    Default Re: Simple way to control inflation / deflation?

    Printing of money, as in the expansion of the money supply, is the very definition of inflation.

    CPI measures some of the effects of inflation but not the inflation itself.

  3. #3

    Default Re: Simple way to control inflation/deflation?

    Thats what Germany did in the early 1900s
    You needed a wheel barrow to take your money to the shop to buy a loaf of bread.
    It bought the value of the Marc to basically zero.

  4. #4

    Default Re: Simple way to control inflation/deflation?

    Simply look at Mugabe & Zimbabwe.
    Inflation rate of 157,000%

    Prices rise by the minute.

    jog on
    d998

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