So Inflation Happens When?

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Posted by vipul (129.22.137.137) on 16:12:54 11/16/07

I read soft currency economics yesterday and I'm still trying to understand it.

Why doesn't government deficit spending lead to inflation? Is it because that spending is being used to mobilize excess capacity and the production that results is deflationary?

And does that mean inflation will only happen when spending does not result in production of something?

Thanks for taking my question.


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