Hello everyone,
I have a question that I'm sure many of you will be able to answer. Here it is: are the effects of inflation the same when the Federal Reserve prints the money for war? In other words, do people still see the prices of items go up and their currency diluded in the same fashion as newly created money being pumped into the economy?
Thank you,
Adam
Yes, they're more or less the same.
The keyboard is mightier than the gun.
Non parit potestas ipsius auctoritatem.
Voluntaryism Forum
Lew Rockwell, chairman of the Ludwig von Mises Institute and editor of LewRockwell.com, gave a speech with the same title as this thread.
“are the effects of inflation the same when the Federal Reserve prints the money for war?”
Yes.
“In other words, do people still see the prices of items go up and their currency diluded in the same fashion as newly created money being pumped into the economy?”
Rising prices are a symptom of inflation, not inflation itself. Inflation is money supply expansion. If price controls are enacted prices will not rise, but usually a growing money supply will lead to higher prices.
It's not exactly the same. Lower consumer population means lower dollar value.