[Eli5] how come the inflation level isn’t going up in the US, if the government literally gave everyone like 1000 dollars 3 times?

Question

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

Answer 1

The money was borrowed in the form of bonds, so dollars from investors were taken out of circulation to then distribute as stimulus money. Eventually the bonds will get repaid with interest.