> Concrete example: if I print money to build a new port, and that new port leads to a decrease in shipping costs? Then prices go down, meaning each dollar is worth more than before I increased the supply. New money is an investment. It's the liability side of the books. The asset side of the books (what we got for it) matters too!
Only if that new port resulted in value added equal to the money printed. If the port only adds, say, half the value it's going to lead to inflation.
If you just print a bunch of money to give to unemployed people, it's going to lead to inflation.
It's worse than just giving out money to unemployed people, I know people with jobs (working for large corporations, not a business of their own) that applied for and got six figures worth of fraudulent PPP loans.
Wanna guess how many people actually get caught for that? I guess we'll find out in a year or two. I'm guessing almost none.
Only if that new port resulted in value added equal to the money printed. If the port only adds, say, half the value it's going to lead to inflation.
If you just print a bunch of money to give to unemployed people, it's going to lead to inflation.