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#11: Printing money does not cause inflation!

Cowboy Economist (Cowboy Economist) 6 views

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Sir, what kinds of books do you recommend to read on this topic?
Comment from : @Sam-zf1zt

He needs to stick to shoeing horses and herding cattle Germany would disagree with this assesssment
Comment from : @mrg1758

This video didn't age well 😂😂
Comment from : @Anonymoustruth293

MMT 👍
Comment from : @GrouchyCowboy

Keep it coming JT!
Comment from : @GrouchyCowboy

The world absolutely got hyperinflation after the printing of 2008 It was just outsourced The inflation was spread across the system and lead to massive increase in grain prices in North Africa which lead to one of the single worst bloodbaths of the 21'st Century known as the Arab Spring
Comment from : @boff1n

i’ve become a proponent of mmt as i’ve learned more in business school and this video quite succinctly tackles one of my most frustrating issues when having debate with austrians and kinesians they’re so convinced that printing money is intrinsically tied to inflation and it’s just not true thanks for putting this out there
Comment from : @OliviaCLTFC

Seriously? Friedman was a fool
Comment from : @frankrusselldesign7563

Is the tall table / low chair a cowboy thing? I'm embarrassed by how distracted I am by this
Comment from : @tychoclavius4818

"Printing money does not cause inflation!" - Robert Mugabe, January 2007
Comment from : @jefferyhammond1421

But what about Money paid by the government to contractors and NGO's? That's a crap ton of money I feel like that doesn't fit into that model I might have missed something
Comment from : @jefferyhammond1421

This only applies locally if you are self sustained (almost no one is due to globalisation) If china for instance decided to properly value their yuan , the cost of goods and service in usd will go up because the yuan is simply more expensive than it currently is On a macro economic level, from a monetary demand point of view, the (unbacked) increase in the usd wealth, coupled with the decrease in demand due to major countries adopting other curruncies in their transactions (new asian economic alliance), as well as the decrease in oil demand globally (even if it was marginal), all will no doubt cause inflation to the usd brKeep in mind that what you used to buy for 1usd back in 2000, is now atleast 15usd
Comment from : @omarrashdan1027

When you have drink too much in the Pub them decide to do a YouTube video 😂
Comment from : @2mad2bad

Im with u man 22hr min wage and 2k per month until covid goes away Us little guys wanna eat too!
Comment from : @Abundance4LL

Nope Price inflation results from, among other things of course, an increase in the currency supply Just look how price inflation has developed since 1913 This is why the very definition of "inflation" in Austrian Economics is an increase in the currency supply
Comment from : @raleighb53

Wonder if cowboy feels smashing his windows increases his economic standing as well maybe crashing his car into his house will do it as well
Comment from : @etrigan911

Zimbabwe Venezuela 1920s Germany they all disagree with you
Comment from : @etrigan911

Random point, but I’m gay and left-wing, and there’s something comforting in hearing very straight conservative sounding people present solid apolitical information It makes me more tolerant; less judgemental of people just because of their voice and appearance I just want people to notice their judgements to realize their their inner ‘social voice’ can cloud information, and that’s aside from the morality of tolerance This point is purely about one’s ability to educate oneself and to think in a content-oriented manner Always good to quiet that voice and just listen Just a random reminder of what most of us already know intellectually, but forget to practice on occasion Take care everyone
Comment from : @JRibs

Our country will be ruined like many others if we print money to solve our problems It has literally never ended without destruction
Comment from : @hulk6164

Thank you very much
Comment from : @justinshin2279

what a great vid
Comment from : @nslcap

Helicopter analogy seems dumb If people already had all the money they wanted, why would they bother to pick up the money? They would just leave it there, in which case they would not bid up prices So the helicopter doesn't lead to inflation What am I missing here?
Comment from : @joelcurtis562

Go to Argentina or Venezuela to see your theory be put in practice
Comment from : @KAPANGAAAMASTER

Ahh your Explanation is very Good than my Boring Commerce Teacher brI would easy know Things
Comment from : @dondebasco9021

That is simplified garbage Way to many variables are overlooked in the situation given brbrIf this is the education offered to “modern economists” well there is little wonder the modern economy is as fragile as it is God help us brbrNice hat though dude
Comment from : @bjornlarsen7440

Printing money IS inflation - You're talking about raising/rising prices as a result of inflation - So you seem to be making the argument "inflation doesn't always cause rising prices" - The act of dropping money out of the heliochopper is inflation - Rising prices result from an unbalanced ratio of varying commodities - Too much money / not enough bricks - - - Not enough money (currency) and too many bricks - Bricks plummet in value / Or, relative to bricks, the "price" of currency skyrockets (it used to take one brick to buy a dollar - now it takes three) -- I think you're making a couple of mistakes here too - Milton pared things back for brevity - The effects of inflation may not be immediate as they affect the consumer last
Comment from : @AutoMotivatedTV

Isn't taxation a bit like monetary policy in your example though? If everyone's taxes are increased or decreased by the same amount the only thing you're changing is the money supply so after a short period of adjustment, changing all the prices, the overall shape of the economy should be broadly the same brbrThis suggests that taxation is only fiscal policy if it is applied unevenly, at which point it's not the taxation that's doing the work, it's the differences in the rate of taxation
Comment from : @ThatGuyMontag

Great video, thanks cowboy economist I'm worried the end part of your argument hinges on definitions of monetary and fiscal policy How do we characterise seigniorage, the creation of money to transfer to the government? Surely this is a monetary policy with the objective of facilitating a fiscal policy?
Comment from : @DonPedroTheDude

Increase in prices are from business owners enriching their life styles
Comment from : @butdoyou1970

Some extra activity is created by watering down the whiskey! It may make the drinker drink more to get the same high and also it might make the drinker assume that he he/she has more actual whiskey than he has and as a consequence pass the bottle around more easilybrIn the final analysis there is less actual whiskey in the bottle so at some point the lack of actual real whiskey will be noticedis putting more dollars into the money pool any different?
Comment from : @vagnsorensen8345

Printing money IS inflation You are referring to rising prices or, to put it more succinctly, the devaluation of a currency Creating more money out of thin air will devalue it That, my cowboy hat wearing southern friend, is a fact
Comment from : @Earthandweather

I am a firm believer in Modern Money Theory, and a firm dissenter from anything Milton Friedman ever said, but I find this video not very convincing Maybe this is not the official definition, but I would classify any policy that pushes or pulls on the money supply alone as monetary policy I think of fiscal policy as the government buying stuff that employs people to provide that stuff The trouble with only increasing the money that people have is that you have no control over what people do with that money As in the aftermath of the 2008/2009 financial crisis, all that pumping of money into the economy did not produce consumer price inflation because the inflation that we did see was all in the stock market or the bond market The people who got the money had no use for it, so they bought stocks or gave the money back to the government by buying government bonds
Comment from : @steve13565

Bravo @CowboyEconomist ! silly that folks think they find a "gotcha" (which people are driven to do, for whatever weird psychological reasons) in criticizing your use of "printing" most folks with the capacity to consume, or even have an interest to watch, understood your metaphor here brbrbrFriedman was a pimp: he came up with a shiny way to substantiate other's work in this area (Buchanan, F v Hayek, etc) supporting neoliberalism A "Solution" that tailored the problem to meet it's desired outcome Of course the inheritance-birth-lottery winners, (generational wealth) prefer something that enables their neofuedal ownership of everything the world is, after all, already 97 monopolized Link to Swiss study supporting this assertion: arxivorg/PS_cache/arxiv/pdf/1107/11075728v2pdfbrbrbrMy only criticism is the assumption of valid employment data I think the Gov has a self interest in fudging that data, supporting lower, or none existent, COLA adjustments to retirees etc ShadowStatscom is a reliable source for unemployment and such regardless, strong video well done, sir brbrbrI understand MMT and have been fairly well briefed into it, and a constraint I think those proponents overlook, is purchasing power, specifically international USA does not have everything it needs, and has to trade internationally, now more so than ever, as US manufacturing was encouraged to shut down and migrate to low labor cost centers internationally The purchasing power of a unit of currency IS impacted by perception of abundance or scarcity of unit's in circulation we see this in the Forex markets of course, like all markets today, there is a tremendous amount of distortion and outright corruption with carry trades, (evidence of the lack of sovereignty of the us fed, and the supremacy of of the BiS - IMF internationally) and such Regardless, on face value, this is a constraint on a sovereign's ability to issue creditbrbrbrThank you for the plain spoken good information, sir
Comment from : @DonaldTurner

Pretty hard to call economics the dismal science when it's coming from the Cowboy Economist
Comment from : @bleore

Thank you very much for the insights I am looking forward to Part II Btw, the ergo remark was fun Keep it up!
Comment from : @Cosgrove247

John great video, but actually most money is NOT printed, but just created by the central bank or private banks just putting numbers into bank accounts
Comment from : @waynemcmillan5970