I am seeing countries are Printing more money & giving to people to boost their economy. Will cause Inflation?
Futurecaps Advisor Answered question January 15, 2021
Money Printing ALWAYS does NOT cause Inflation.
- Inflation in Price happens based on Demand-Supply algorithm
- Whenever demand goes high Or supply goes low the PRICE goes HIGH
WHEN IT GOES HIGH!
In a normal economy where the demand & supply are balanced >> any sudden surge in Money Availability will cause the Prices to go High! This is because more & more people have money to purchase goods thereby driving the demand high.
WHENT IT DOES NOT NOT GOES HIGH!
In a struggling economy where the demand is less & supply are more >> More Money Availability will NOT cause Price Increase! This is because there is enough supply left to meet the demand gap.
This is what countries like US doing.
Futurecaps Advisor Answered question January 15, 2021
