I know that under MMT the risk of inflation would be related to government spending pulling resources from the private economy causing an increased demand and competition for resources but how would this work when there is a flow of money through government spending that does not work towards increasing productivity? Inflation is basically about the ratio between quantity of "money" in the economy and the quantity of "stuff" being produced by the economy. ("Stuff" being a shorthand for total number of goods and services). If the government is pulling money out of the economy and the quantity of […]
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