Dollar bills Quote by Joseph Stiglitz
“We could, of course, always make the payments, simply by printing more money - we simply promise to pay people by giving them dollar bills - but that could set off inflation.”
About This Quote
Source Speech: Interview on Monetary Policy, 2009
Printing money to cover payments can cause inflation, reducing purchasing power and harming the economy.
In simple terms: Printing money can cause inflation.
Key Takeaway
Avoid financing deficits by printing money.
Themes
economics
inflation
fiscal policy
Mood
cautious
analytical
Type
policy
economic
When to use this quote
- budget deficits
- public spending
- central bank decisions
- currency management
Key Concepts
monetary supply
price stability
government debt
Questions to Reflect On
- How can governments fund obligations without causing inflation?
- What safeguards prevent runaway inflation?
A Different Perspective
Printing money may lead to hyperinflation if not controlled.
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