Flopper
Diamond Member
printing more currency obviously increase the money supply however the Fed can increase the money supply much more effectively by reducing interest rates and open market operations. Yes, government spending can increase inflation however, natural increases in demand or decreases in supply is much more a factor than government spending policy.Inflation is also a function of spending policies. Government printing currency has the effect of diluting the value of existing currency. You should have taken Econ. 101
Also government spending policy does not always result in actually spending. For example the major legislation passed in Biden's first two year proving trillions for infrastructure and the environment has resulted in only 17% of the funds being spent. For various reason actual spending can stretch out over a number of years.