reidwalley on Nostr: Enjoyng learning more about the mechanics of how inflation (ie: declining purchasing ...
Enjoyng learning more about the mechanics of how inflation (ie: declining purchasing power) is created.
“…the central bank uses its reserves to purchase government bonds, thus financing the government.
“As governments ultimately control central banks, despite their constant protestations to the contrary, they can lean on them to purchase their bonds to allow for more government spending.
“When a central bank buys larger quantities of its government's bonds, the value of its currency declines, since it funds these purchases by inflating the money supply.”
- saifedean (nprofile…lh5m) Ammous, The Fiat Standard, pg 61
“…the central bank uses its reserves to purchase government bonds, thus financing the government.
“As governments ultimately control central banks, despite their constant protestations to the contrary, they can lean on them to purchase their bonds to allow for more government spending.
“When a central bank buys larger quantities of its government's bonds, the value of its currency declines, since it funds these purchases by inflating the money supply.”
- saifedean (nprofile…lh5m) Ammous, The Fiat Standard, pg 61