/biz/ - Business & Finance

>>23202102
someone has to buy money for the money to be created. Just because Jerome Powell says "we;re gonna raise inflation" doesn't mean he actually can. In fact, in the same setting where he says that they will, you'll never hear them explain exactly how that money gets to anyone in particular. Someone has to buy the money from the bank.

Now, how much can the bank sell? Infinite. They can open as many lines of credit as there are people to take out loans. So the only true characteristic of money that grants it value is its velocity. which could be described as '$X changes hands Y times in Z time'.

Now, whether or not lowered velocity causes deflation is an entirely different argument. I've never seen any sufficient evidence to suggest a true connection and not just correlation. Maybe someone can enlighten me with stats.