How to Print Money without Causing Inflation

Video quality	The size	Download

Information How to Print Money without Causing Inflation

Title	:	How to Print Money without Causing Inflation
Lasting	:	13.45
Date of publication	:
Views	:	61 rb

The 3blue1brown of economics Thank you!
Comment from : @vidkids1963

Thank you again I watch a lot of these economic and financial video's By far yours are at the top of my list They are understandable, balanced, present evidence, and provide opposing views
Comment from : @MrCarlnatalizia

Could you please provide some examples of when massive money printing DIDN’T cause inflation?
Comment from : @russianmom8311

det är verkligen väldigt bra
Comment from : @2ProcentSverige

I extremely love this video! Great information and a new insight on money printing! This gives me new ideas regarding political reforms
Comment from : @GarryNestler

I think that the chances of printing money are significantly lower than the risks involved brbrOf course it's possible to get it right if you have people who never make mistakes, but that's not the case brbrThat's why I think it would be better not to print money and to create investments in other ways brIt may take longer and be more difficult but in the long run I think it would create a healthier and more resilient economy
Comment from : @Bitcoinonly21

So, its basically like a loan, whether u use it responsibly or drown it debt depends on how u use it
Comment from : @aniksamiurrahman6365

Does printing money always devaluates existing money?
Comment from : @bunnihilator

When more USD currency is counterfeited (printed) by politicians it not only steals from every US citizen, but from every usd holder around the worldbrbrWhy do you think WAR exists?brWar is just more theft at an accelerated rate
Comment from : @Jackson-l3r

This video has so many logical errors that cannot all be addressed in this small space The video ignores a fundamental set of principles Money acts as a medium of INDIRECT exchange In that role money prices signal the relative exchange rates between goods Any artificial change in the quantity of money (up or down) distorts price signals causing economic actors to make valid decisions based on flawed price information There is no "right" way to expand the supply of money
Comment from : @MengerMania

You're an oasis in the desert of simplistic youtube economics
Comment from : @вернат

I don't dismiss money printing, however the root of the problem is the fact the newly created money flows to the rich Also, besides the central bank printing, they also allow banks to print loan money, which once again the rich are the main beneficiaries ofbrI'm not even saying the rich are bad, here But they already have the basic expenses of life covered, so their money will be invested in speculative assets, instead of real world benefit The problem here is that investment expects a return… and this cycle cannot continue forever
Comment from : @alexmipego

How about trying to go a bit behind GDP 🤔
Comment from : @DistributistHound

I think the more insidious risk over time from money printing is lack of productivity and the slow erosion of real purchasing power for wage earners
Comment from : @willismiller7035

Money printing to macroeconomics is like the insanity defense to law They exist but they are remembered for completely wrong reasons
Comment from : @inferno0020

I would really like you to answer other questions: if money printing is moral at all, as it effectively steals value from people, for which they worked so hard for; and not just the easy, and artificial, and imoral, way found by the governments to deal with inflation or other economic problems, instead of addressing the issues root causes instead; and if using gold reference for instance, would be any problem nowadays Thank you
Comment from : @Jose_Lima

9:21 brdeveloping nation : govt print money for their citizen to buy basic goods and servicesbrdeveloped nation : govt print money for their citizen to invest in stock market brWhy a govt print money and told it's citizen to invest in stock market ? that's not a good reason to print money
Comment from : @greatndit

Keynesian snake oil salesman
Comment from : @slop123456789

Zimbabwe and Weimar Germany both owed iforeign/i debts They could not print foreign currency
Comment from : @elonmusksellssnakeoil1744

Fractional reserve banking is equivalent to printing money They could easily manipulate the fraction in order to manipulate inflation
Comment from : @terjeoseberg990

2008-2009 about $20 trillion worth of Dollars, Yen, Pounds, Euros was dumped into global circulation Inflation globally was under 2 Why? Baby boomers largest cohort were in 50s and China was at peal production, this kept labor demands low (lower wages) and products cheap (you could buy with low wages) Now China is falling off global market place (many reasons to long for this text) and boomers are retiring, driving prices and wages up Throw largest land war in Europe in 75 years for flavor boom Inflation
Comment from : @BodyByBenSLC

I really appreciate your factual and level-headed articles on economics and financebrThere are too many misleading posts on the subject on YouTube ,intended to be sensational click-bait or serving particular Geopolitical interesrs
Comment from : @kitpong1777

Bidenomics is fiscal money printing and subsidy to demand side
Comment from : @klam77

bi"Too big too fail"/i/bbrbrI would say it takes 6 months to the trickle down from money printing on Wall St to pain on Main St
Comment from : @YouilAushana

I wish my South African government could watch this video They could borrow Eskom money to build power stations This will create jobs instead of fighting inflation caused by regular power cuts
Comment from : @tebogoletsoko1342

But if we assume you already have inflation like now? Is printing money today the solution?
Comment from : @linafarber2106

money printing should be tied up with countries GDP
Comment from : @alfonstabz9741

Love it!😊
Comment from : @CS-ko6kp

Responsible money printing, kind of like an alcoholic moderating their drinking
Comment from : @JohnRBasher

This is what MMT talks about You explained it great as usual Gezellig!
Comment from : @sternof

12:46
Comment from : @kentheengineer592

Few points that I want to add that you missedbr1) Currency should be relatively strongbr2) There should be demand for currency (The above two factors give the US the advantage of printing dollars)br3) All the printing should go into productive outputbr4) There should be no full employment brbrWhen people talk about Germany, same Germany under Hitler printed money and invested in infrastructure, with a clause that no prices or wage hikes This example should be emphasized more brbrBut anyway excellent explanation
Comment from : @hariomhari6181

Sorry, but to me this sounds like gambling talk You seem assured, but when reality comes crashing in, everyone will dismiss the failure to some external factors
Comment from : @BlackSunRX2008

guys, this is MMT! the assumption that just injecting money into the economy in case of a recession will solve said recession, is an absurdity If people are not consuming specific in case they are in a bad situation, it's because that is probably the best thing to do both individually and as a society, people don't need an incentive at all to consume, even if there is a deflation (something none of us have ever seen but ok) Injecting money in such a case creates a false sense of security on people and they spend money they don't actually have in things they don't actually need and that downwards spiral leads to a depression, through inflation Also according to MMT, there cannot exist recession paired with inflation, but we all know that is not true
Comment from : @YandiRodaAlarcon

Wonderful content! Not too many people think of these scenarios/perspectives More governments need to consider these strategies
Comment from : @mayuresh1704

Incredible video 🙏🤯 please make such videos more
Comment from : @SurajKumar-vt7it

I'm quite dissappointed in this one When you make a deposit at a bank with cash, new deposits are created In a simple model, this swap doubles the "money supply", however, no one's net worth has been changed Also, no purchasing power has been changed You can demonstrate with balance sheets alone that money creation (via swaps) can have 0 effect on purchases There's no need to discuss the "real economy" at all Thats not all though The graph you had for Supply and Demand is for perfectly competitive markets Cash is a monopoly, so your graph is misleading Not only that, but Demand is based on an unobservable unit called "utils" In practice, businesses merely set prices based on a discounting formula Within Zimbabwe, the investment scheme you outline could very well do nothing due to corruption It's quite possible that farmers will take the money and leave or not increase supply at all Reducing supply to keep prices high is well noted in farming (as well as diamond mining) Additionally, the materials farmers need in Zimbabwe are foreign technologies, these need to be purchased in USD or Euros rather than local currency Lastly, Richard Vague did a study looking at 47 countries over 60 years and found there was no correlation between money supply and inflation This matches with what balance sheets say
Comment from : @harrisjm62

So in short increase industrial output to reduce inflation right?
Comment from : @whatsup3519

This video aged like milk
Comment from : @jennaharrison1001

What about money printing causing the boom bust cycle according to austrian economic theory ? (and thus also in developed economies)
Comment from : @bartvanderhaegen6073

The title alone tells us that this video will be stupid Printing money IS inflation You can't inflate the money supply and not inflate the money supply Rising prices is NOT inflation, just a consequence of inflation
Comment from : @Lord_Volkner

Good explanation of how fiat credit money we have today is created with an equal debt liability br The problem with Zimbabwe is still the government which is their politicians apply socialist based policies that are based on pandering to people's desires instead of sound policies based on an understanding of the way to grow an economy money and an understanding of the principles laid out in this video
Comment from : @Rob-fx2dw

Why don't even industrialised nations use money-printing to invest in startups?
Comment from : @ASLUHLUHC3

Incorrect because the printed money goes to the politically well connected, not the best farmers or producers Your video also does not account for Cantellon effects, and hand-waves how corruption enters the calculation
Comment from : @cassiuslives4807

if the people in the devoloped world will spend the newly printed money n investments,br how do you explaine the rise of amazon after the pandemic stimulus????
Comment from : @YousefBadri

total nonsense
Comment from : @YousefBadri

13:23 "you all are responsible economists"brI assure you, I am not
Comment from : @MrNichan

11:26 It is geometrically the same thing if you imagine the lines continue infinitely in both directions, but I think it would be a lot more intuitive if you slid the demand line up (representing a willingness to pay higher prices) instead of to the right, and still slid the supply line to the right (representing an increase in quantity of food) Also, you messed up a bit with your words when you first described the supply and demand graph
Comment from : @MrNichan

unless you and yours are lord Sati soul or HER APPOINTED(LORD VISHNU, LORD GANESHA, LORD KATEKELA ETC) NO ONE IS ALLOWED TO PRINT MONEY YOU AND YOURS WILL AND ARE CHARGED WITH SINNING AND CONTROLLING MY PEOPLE
Comment from : @denisesai733

A little bit of Keynes
Comment from : @DjBaapreB

The problem of printing bills to pay the bills
Comment from : @MisterTutor2010

There is only one way to print without causing inflation: Your real productivity must outpace your rate of money printing Say's Law Anyone claiming anything more complex (such as requiring a 13 minute video) is inefficiently pumping hot air and spewing horse shit from his lips Full stop Do not pass go, do not collect $200
Comment from : @Pepe_theFurfagFrog

How to print money without inflation, how to turn iron into gold
Comment from : @cuzmariosaidso

This important for avoiding the Vuvuzela phenomenon
Comment from : @SpartanJoe193

I like the economics of Anwar Shaikh, and they fall in line with the conclusions of this video Shaikh argues that inflation is a factor of purchasing power and the growth utilization rate In other words, how much money is in the system, and how much room for growth is there? Using this theory one reaches the same conclusion regarding the printing of money As long as it is used to increase productive capacity, it will not cause inflation
Comment from : @TheCommonS3Nse

Great explanation as usual I would just add that there are implicit assets on the government's balance sheet that arise from their right to taxation If the corporate tax rate is 30, the government basically owns the right to 30 of all corporate profits as though they owned 30 of all those businesses The value of this asset is equal to the present value of 30 of all those profits indefinitely into the future, including the profits of businesses not yet in existence, so you get an asset value equal to something like 30 of the total market capitalisation of all public companies in that country And that is just the corporate taxes So all that money the central bank prints is ultimately backed by the tax fraction of all the income of domestic companies and citizens into perpetuity
Comment from : @temperancepress2230

Printing money is great just as long as the largely unaccountable politicians and bureaucrats get it right Brilliant
Comment from : @isaachoffman6450

@11:20 Is money ever printed for startups in general, meaning globally in both industrial & developing countries?
Comment from : @Chizstarz86

The title sounds somewhat like downloading more RAM
Comment from : @ahmadumar2338

As you can see we are already in July and I feelbrthose who would allow the market dynamism tobrdetermine When to trade or not are either new inbrspace in general or probably just naive, the spherebrhave seen far worse times than this, enlightenedbrtraders continue to make good use of the dip andbrpump even acquiring more equities towards tradingbrsessions, I'd say that more emphasis should be putbrinto trading since it is way profitable than holdingbrTrading went smooth for me as I was able to raisebrover 92 BTC when I started at 35 BTC in just fewbrweeks implementing trades with signals andbrinsights from Ryan Donald's would advise y'all tobrtrade your asset rather than hold for a future youbraren't sure about
Comment from : @justinhamilton7855

Hi! Any chance you might have an explanation on how the second kind of responsible money printing works? Is it simply by causing a little bit of inflation to counter deflation?
Comment from : @denisdavies3486

11:07 well there was, until Mugabe kicked out the whites
Comment from : @Bolognabeef

I don’t think this is correct He’s basically claiming that as long as a gov prints money and invests it in a means of production the economy magically grows
Comment from : @edwardman1742

Wow
Comment from : @pranavgakhar9992

I just love these "Just So" stories that macro economists tell themselves and folks who want to hear fairy tales They are like telling a guy without a girl friend that he can get one by being 5 percent nicer or more charming or more confident Or that if you are unemployed you can get a job by being willing to take a job for 5 less Supply and Demand is a general trend, but hardly a law of physics
Comment from : @richdobbs6595

Hi Joeri Thanks for the amazing contentbrI have a question If the Zimbabwean government wanted to stimulate gold mining but without causing the massive inflation, what tools did they have? Evidently money printing wouldn’t work in this case
Comment from : @rouhollahseyfi

Any amount of money printing is theft
Comment from : @morteza1024

Bank notes created by a central bank are a liability from the bank's viewpoint because they are like promissory notes to give "real money" to the holders of these notes Before 1971 gold reserve was this real money
Comment from : @greengalaxy8873

He's really attacking a straw man around the 10:30 mark There are better, nobel-prize-winning arguments for why money creation is always a problem than he gives, which is the definition of a straw man :) For a hint: consider the consequence of some people getting the new money (the miners or farmers) while other people (the teachers and cobblers?) do notbrHis examples also assume that a central bank (or a central govt) has the knowledge to correctly forecast which businesses will be profitable and which will be wasteful, and brother, that is a crazy proposition at best
Comment from : @bozimmerman

Our Central Bank CREATEs money, but it does NOT "print money" All printed money in this country is printed by the Treasury Dept
Comment from : @clarestucki5151

At this point I just assume all the debt the US government has will be paid of by printing money either now or some time in the future
Comment from : @curtisw0234

really good content thank you!
Comment from : @anhmuhamath

In the USA the Federal Reserve is prohibited by law to buy government debt directly from the Treasury, unlike Zimbabwe or banana republics I really like your videos Could you make a video explaining how the "money" (bank reserves) created by the FED is used to purchase pre-owned government debt from member banks (quantitative easing), thus trapping this "money" inside the banking system and thus not causing inflation in the real economy Thanks
Comment from : @johnc4053

I just love your channel, Marco We have so many half-truths, fearmongering, and conspiracies whenever people discuss macroeconomy When we have enough channels to blame problems on the Federal Reserve and whine about economic collapse all the time, your channel provides an understandable yet rational explanation about the economy we urgently need to know
Comment from : @inferno0020

?brbrInflation is the over printing of money - so how is the Fed doing so far?brbr“None of the arguments that economics advances against the inflationist and expansionist doctrine is likely to impress demagogues brbrFor the demagogue does not bother about the remoter consequences of his policies brHe chooses inflation and credit expansion although he knows that the boom they create is short-lived and must inevitably end in a slump brbrHe may even boast of his neglect of the long-run effects In the long run, he repeats, we are all dead; it is only the short run that counts brbrBut the question is, how long will the short run last? It seems that statesmen and politicians have considerably overrated the duration of the short run The correct diagnosis of the present state of affairs is this: We have outlived the short run and have now to face the long-run consequences that political parties have refused to take into account”brbrLUDWIG VON MISES New York June 1952 Prefix The Theory of Money and Credit
Comment from : @Bitcoinhodlgang

Does an asset purchased by a central, such as government bond, get canceled after its purchase?
Comment from : @allangonzalez842

So to sum up:brMoney printing causes inflationbrIncreasing productive output causes deflationbrbrThese two things can cancel out, and you can lead with printing to try to induce growthbrbrSo is the whole spiel about liabilities even relevant?
Comment from : @kanucks9

Commenting for the algorithm You are a very underrated creator
Comment from : @afia_begum_chowdhury

Surprisingly, I feel like this video actually misses the main point of inflation and money printing If the government issues liabilities in the form of notes and coins, their value is limited by how much the government can actually 'back up' those liabilities with governance, public services and military power The total value of all notes & coins in circulation must be limited by the total amount of services that the government can provide So if the government continues to print money, the people know that the government can't back it up and they know the total value of all notes/coins in circulation is only a finite amount, despite how much is minted Loss of faith in the currency results in hyperinflation brbrIt's not about the specific markets, higher demand on goods, et cetera, as you discuss in this video The extra money gradually disseminates throughout the economy and leads to an overall inflation in all marketsbrbrAlso your second graph is very wrong Supply would increase much more than demand Extra demand is only the farmers Extra supply is all the food they can supply, which feeds much more than just themselves Total cost of food goes down
Comment from : @wizard7314

Regarding Zimbabwe's economy, is there anything to do with China investment flows?
Comment from : @applythesamewaytoyourselve5918

The problem is that the government debt keeps growing out of control The same thing happens with the interests of the debt Nowadays the US government spends more money in interest rate repayments than in federal pensions for retirees Besides it has become impossible to reduce the debt The problem has no solution
Comment from : @fernalonsoau

5:10 "'Please, can you print me some new money', they asked forcefully" 😂 this was gold
Comment from : @dariuskonig8762

do you think MMT will work ?
Comment from : @hyu7335

MMT believes printing papers is a viable option to saving and investing while those who save and invest are more likely to invest in truly productive businesses the govt is under no such obligation plus in reality the central banks do not subsidize emerging or expanding businesses but rather finance the endless black-hole that is the public debt of the govt and provides it with a seemingly endless supply of money no central bank responsible or not will allow its govt to go bankrupt it why it exists in the first place to protect itbrdepressions are corrections of mistakes in the boom phase or a response to a new reality of the means of production or consumption or a cautious attempt at weathering the geopolitical winds stopping depressions will either lead to the persistence of the mistakes or be a risky decision that may carry dire resultsbrplus MMT depends on some good old bureaucrats to manage the economy on a central level and we all know how that ends upbralso MMT theoretically depends on the monopolistic use of force by govt to collect taxes in its own currency not any rational or benevolent principle brit is hard to think that MMT is nothing other than the new model of the failed keynesians economicsbrMMT too believes in the constant growth for growth's sake and will constant push those with wealth to either buy or see the wealth depreciate bolstering consumerism and materialism and the constant fatigue of constantly worrying about your investings and not getting to enjoy the security of your savings
Comment from : @legendary7957yahoo

11:45 seems to me that the essence of modern monetary theory is: The government invests with money borrowed from the people As long as they make a profit it is good for the countrybrAm I right?brbrBut in the case of Zimbabwe: if the government would protect investors, wouldn't guys like Bill Gates love to invest in food production in Zimbabwe? They look good to the world and as long as they are protected against fraud and criminals they even make a profit while Zimbabwe gets a nice cashflow
Comment from : @Ferdinand208