March 16, 2011 Reading Time: < 1 minute

“According to mainstream thinking, the stronger the monetary pumping is, the stronger the pace of spending — and consequently the stronger the monetary income and the so-called real economy is going to be. In short, in this framework more money means more spending and this leads to stronger economic growth.

Contrary to this way of thinking, more money only undermines the process of real-wealth generation. This means that more money is bad news for the production of real wealth.” Read more

“Does Economic Growth Cause Inflation?” 
Frank Shostak 
Mises Daily, March 16, 2011. 
Via the Ludwig von Mises Institute. 

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