Occasional Tweets: A government deficit causes a price hike but no inflation

 

#LearnEconomics#Inflation

MMT was right all along: Gov-Deficits do NOT cause inflationhttps://t.co/tNg8dEgo6L

The macroeconomic #LawOfSupplyAndDemand tells one exactly how the #Price P increase as a function of #DeficitSpendingMoneyCreation i.e. the expenditure ratio ρE. pic.twitter.com/lSweXfwzLm

— E.K-H (@AXECorg) December 17, 2022

For more about inflation see AXECquery.