Quote:
Originally Posted by opendoor
Why? In the long run, the creation of new money is roughly equal to Real GDP growth + productivity growth + inflation.
So if money creation was insanely out of whack with growth, then inflation would be unsustainably high over the long term, but that hasn't been the case for decades.
As for "infinite money printing", the pace has slowed significantly since the '70s and '80s. Canada's M2 annualized growth:
1970s: 14.8%
1980s: 10.6%
1990s: 3.3%
2000s: 7.4%
2010s: 6.4%
2020s: 8.8% (this is dragged up by the one-time influx during COVID and is dropping every month)
If you think adding 6-7% to the money supply equates "printing money into infinity" then you really don't have a very good handle on economics.
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I’d be interested to see your source on this thank you.
https://betterdwelling.com/over-1-in...two-years-ago/
https://www.investopedia.com/ask/ans...ney-canada.asp