From what I know, the government can make cash out of thin air, but this causes inflation levels to rise. Or is everything they’re giving out just their surplus?
In: Economics
Inflation is typically caused by more money in circulation, not more money in existence. People don’t have money to spend, so businesses don’t raise their prices. the stimulus checks are mostly being spent on bills rather than goods. I’ve read that the US dollar gained value when the market crashed in March last year, because everyone was selling their stocks to try to get cash. Since then, we’ve had some pretty rapid inflation but it has evened out to follow the usual trend.
Latest Answers