"The economic consensus is that general inflation is caused by growth in money supply outpacing economic growth, and that high general inflation is caused by excessive growth in the supply of money (Mankiw, 2002).
But most economists do not share the hypothetical concern that a UBI would cause high and general inflation, because there is no reason to assume that a UBI could not be financed by taxes and dividends—which would use money already in circulation, rather than newly printed money.
Insofar as inflation does not involve an expansion in money supply, then, a UBI should not lead to high or […]
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