Phanie

“When economic growth slows, governments can legislate for higher minimum wages, or central banks cut interest rates to boost the amount of money in circulation, and, as we've covered earlier, these measures can inflate GDP growth. But inflation doesn't make anybody richer. We don't collectively get any wealthier in real terms unless we work harder or work smarter and produce more stuff.”
― Liam Dann, BBQ Economics: How money works and why it matters

“Money is simply a device to measure the value of things. We can't eat it or shelter in it. It's not entertaining or delicious. If we print more, we haven't created any more wealth; we've merely diluted the value of the money. Hence inflation.”
― Liam Dann, BBQ Economics: How money works and why it matters

“All things being equal, inflation could change the nominal price of things without changing their value much. So long as your wages were going up in sync with the cost of living, the numbers might get bigger, but you wouldn't get any more or less wealthy. Unfortunately, inflation is never quite so fair. It hits different parts of the economy differently at different times, often exaggerating inequalities and eroding trust in the monetary system, which tends to be based on the price stability of money.”
― Liam Dann, BBQ Economics: How money works and why it matters

“We've already seen how the amount of money in an economy will affect economic growth: more money means more growth, but can also lead to inflation if it's not backed by productivity gains and real wealth creation. The 'extra for experts' bit in this equation is the velocity of money... the V. That's the speed at which money circulates around the economy. In even more basic terms, it is how fast we're spending it.”
― Liam Dann, BBQ Economics: How money works and why it matters