How does printing money cause inflation?


Great question on Quora:
http://www.quora.com/Inflation/How-does-printing-money-cause-inflation

One way of looking at Money is that it's a certificate that represents something of real value (food, clothing, services,...)

Each time new value is produced, an equivalent amount of money can be printed to represent it, thus maintaining a constant money/value ratio

However, if money is printed without a corresponding value creation, the ratio of money to value must change - go up
Emini Day Trading / Daily Notes / Forecast / Economic Events / Search / Terms and Conditions / Disclaimer / Books / Online Books / Site Map / Contact / Privacy Policy / Links / About / Day Trading Forum / Investment Calculators / Pivot Point Calculator / Market Profile Generator / Fibonacci Calculator / Mailing List / Advertise Here / Articles / Financial Terms / Brokers / Software / Holidays / Stock Split Calendar / Mortgage Calculator / Donate

Copyright © 2004-2023, MyPivots. All rights reserved.