On: Sticky wage norms and the real wage cost of unexpected inflation

[mritterhoff]

That might be a side effect, but I'm doubtful it's the cause.

The main cause as I understand it is that the govt prints money to offset the gap between what it collects in taxes and what it spends.

[dnautics → mritterhoff]

That's not really right either. think about it this way: what would happen if the budget was balanced and the us suddenly had a surplus? you HAVE to print money, where is the interest on debt going to come from.