mrstickball on 08 May 2010
@Akvod -
That makes absolutely no sense. If the government is running a deficit, and spending the money, then it is inflating the economy - it is running a major deficit, and creating money to use in the market place (after all, if the government is down $13 trillion in money, I must think that the money is out there in the supply, at some point).
Although the government doesn't engage in a significant amount of seigniorage, it still is there. If it were not, then quantitative easing wouldn't be a possibility for dealing with our deficit.
Back from the dead, I'm afraid.
