Universal Basic Income does not cause inflation

Universal Basic Income does not cause inflation

Universal basic income (UBI) is a policy that would give all citizens an unconditional, predictable income to cover their basic needs. There is widespread belief that any monetary intervention stimulates hyperinflation of the form found in 1920s Germany, 1990s Argentina and 2000s Zimbabwe. However, there is little evidence to support this view. UBI is no more or less inflationary than anything else that raises incomes – its impact would depend on whether the economy is at full employment, whether taxes are raised

The idea that a Universal Basic Income fuels inflation makes no economic sense.

We live in an age […]

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.