How to Print Money without Causing Inflation

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Title	:	How to Print Money without Causing Inflation
Lasting	:	13.45
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So if I understand correctly, printing money for developmental loans works great, but it doesn't work well in cases where it goes primarily to consumption (ie poorer countries) or where it goes primarily to investment (ie richer countries)?brbrAlso, please make a video on UBI, and how that would affect the economy Wouldn't money printing/creation for that lead to hyperinflation as people will spend on consumption?
Comment from : Abdul Moiz

Keynesian snake oil salesman
Comment from : slop123456789

Zimbabwe and Weimar Germany both owed iforeign/i debts They could not print foreign currency
Comment from : Elon Musk Sells Snake Oil

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

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 : the man with no name

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 : Kit Pong

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 : Youil Aushana

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 : Tebogo Letsoko

But if we assume you already have inflation like now? Is printing money today the solution?
Comment from : Lina Farber | DIY פיננסי

money printing should be tied up with countries GDP
Comment from : alfons tabz

Love it!😊
Comment from : C S

Value unlike money can not be created in an instant, so where does value come from to improve the farms? Don't savers get to be worse off until the farms start to produce more just to get break even once they do?
Comment from : MilitaryTopFive

Responsible money printing, kind of like an alcoholic moderating their drinking
Comment from : John Basher

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

12:46
Comment from : Kenneth The Great

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 : HARIOMHARI

It is absolutely NOT free to print money It literally dilutes the value of all existing supply, so you just taxed every saver and nation that holds your currency When money is printed the cost is absorbed by everyone holding that currency it is not free by any meansbrbrThis is simple supply and demand If my economy has $10 total and I print another dollar and throw it in the literal demand for dollars just went down I diluted the value of the existing 10 dollars
Comment from : James Vannordstrand

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 : TokusatsuFever

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 : Yandi Roda Alarcon

Wonderful content! Not too many people think of these scenarios/perspectives More governments need to consider these strategies
Comment from : Out Of The Box

Incredible video 🙏🤯 please make such videos more
Comment from : Suraj Kumar

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 : Mathew Harris

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

This video aged like milk
Comment from : Jenna Harrison

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

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

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

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 : Cassius Lives

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 : Yousif AL Badri

total nonsense
Comment from : Yousif AL Badri

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

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 : H H

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 : Denise Sai

A little bit of Keynes
Comment from : Sheepy Sleep

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 : Skelet FlyingFalcon

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

This important for avoiding the Vuvuzela phenomenon
Comment from : MLGJoe

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

For productive use it's called credit money (making new loans) Money-printing in the popular sense is simply currency devaluation, and that IS inflationary, everywhere and always
Comment from : pj

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 : Bany Jaya

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

@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 : ahmad umar

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Comment from : Justin Hamilton

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 : Denis Davies

11:07 well there was, until Mugabe kicked out the whites
Comment from : Bologna Beef

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 : Edward Man

Wow
Comment from : Pranav Gakhar

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 : Rich Dobbs

Is there a example where money printing went ok as a way to deal with retrieving demand?
Comment from : Max de la Serna

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 : Rouhollah Seyfi

Any amount of money printing is theft
Comment from : Morteza Habibpour

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 : Green Galaxy

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 : Clare Stucki

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 : Si Anh M Nguyen

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 : John C

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 : CB the Bitcoinomist

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

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 : Connor Wiebe

A basic assumption here is that the supply/demand are elastic, which is not true for a lot of the assets, especially in the short term It also may not be true even for stocks in the short term Therefore, money printing will always cause asset bubbles And this becomes even more true when the economy is flooded with credits where there's no more productive area to invest in or if the country is not competitive enough regardless how much you invest in it
Comment from : W Gemini

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 : Wizard

Regarding Zimbabwe's economy, is there anything to do with China investment flows?
Comment from : Apply the same way to yourselves

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 : Fernan Gonzalez

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

do you think MMT will work ?
Comment from : Hyu

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 : Abd El Rahman Sherief

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 : Ferdinand

CRANK CRANK CRANK CRANK CRANK CRANK CRANK
Comment from : Alex

your old vids are getting recommended Looks like your growth is gonne explode soon
Comment from : Devansh: Machine Learning Made Simple

I'm going to start my Masters in Economics soon, and this channel just increased my interest in these topics! Thank you!
Comment from : MalaysianChineseIV

Great video Thank youbr I always knew that money printing isn’t all evil, because modern industrialized economy are built on trades, trades of labor, resource and commodities Money is like the blood of the trading process brbrYou need enough blood cells to carry oxygen into all the cells of economy Bigger the economy becomes, more blood cells required to remain healthy
Comment from : Bronzo Flownzo

@07:53 biggest problem in current economists and governments is, that it is catch-22: they measure amount of services and goods in that same currency!
Comment from : effexon

Can you do a Great Depression video series ?
Comment from : Nikolay Tsanov

Money is extremely weird Just look at Bitcoin A currency that is scarce by design but there is a form of money creation called the "block reward" which pays miners with Bitcoin You see, barely anyone uses Bitcoin for payments Yet Bitcoin is entirely dependent on a class of "workers" who are getting paid through money creation It's basically a parody of the USD and other fiat currenciesbrbrIf I had to summarize the problem it would be: "People stop working when the economy runs out of money," At a first glance it makes no sense yet for some strange reason it keeps happening over and over again
Comment from : Shu Shirakawa

Good video! brJust to add, there is money printing also for price competition The most significant case is SNB, they "print money" to absorb euros and dollars and to not deteriorate the exchange ratesbrBTW, can you do a video explaining how SNB works, what it does with its giant dollar reserves and the euro-franc peg existing till 2015?brbrKeep it up!
Comment from : Pablo Olivera

Japan had done No hype
Comment from : Shade Wayar

We have already learned alot from you about the different ways Asset Bubbles can come to existentce But what are the theoretical reasons for them to pop? Since at some point they have to burst or they would not be a true bubble right?
Comment from : Mc Mannfred

12:56 Can money printing be used to invest in productive capacity for long drawn-out periods of time outside of economic crises or is that incredibly dangerous?
Comment from : Illegitimate Otaku

Even better example of hyper inflation was Yugoslavia in '93, when German Mark was de facto main currency and denominator of value
Comment from : misha

Growth or profit at the expense of someone's lose is not growth or profit, but more along the like of theft and giving this illusion of growth is totally meaningless brI personally started a campaign to get public understanding the concept of exchange of value in commodities and services and how money should facilitate the process, instead of being a hurdle in actual growth in some ways br brwwwindexladdercom
Comment from : Index Ladder

Corruption is a very serious problem
Comment from : Noah A

Very well explained,and easy to understand for average Joes like me thanks
Comment from : Mahdi

So you covered the case where money printing is inflationary, and the one where it has no effect of the money supply, but there's one more (that might be especially salient in these strange times): when can money printing be deflationary?brbrbrWhen the assets you're buying have a higher velocity than the money you're selling! In particular, if the fed prints money in order to buy up highly-leveraged hqlas from banks, it has replaced a dollar-demoninated asset that is used in 100s or thousands of transactions a year with bank reserves that are unlikely to be used at all in today's extremely conservative lending environment
Comment from : Six Squirrels

Your choice of stock footage is really really really good And your explanations are very helpful!
Comment from : Turd Ferguson

This video is insanely easy to understand and held my attention This video was transformative for me on how I view money I also appreciate your willingness to accept that there can be nuance
Comment from : Teejin

Unfortunately it really is a ponzi scheme controlled by drunken sailors also known as politicians
Comment from : Larry Dugan

Oh bro, I am I love with you channel Thank you for all your effort explaining this amazing topics I try to explain it to my team to make them understand how economic works I think your video does mush better job
Comment from : Mered Fikireyohannes