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Does government spending spur inflation?

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TL;dr: No. Inflation is the result of the money supply growing faster than the economy. The effect of inflation is a general rise in prices, not caused by fluctuations in supply and demand, and not connected to innovations, etc. read more

Government spending can lead to economic growth that results in the central bank growing the money supply too quickly, leading to inflation. But then, so can private-sector spending. But in either case, spending doesn't affect the money supply directly, so it doesn't spur inflation directly. read more

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