Why didn’t USA experience huge inflation after giving USSR huge aid during WW2 and aiding Western Europe through Marshall Plan?
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In economics, inflation is a general rise in the price level in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.
Giving money to another country doesn’t generally do this.
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