r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 9h ago

Meme needing explanation Petah?

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u/CreBanana0 8h ago

No seriously. Why tf would you get hyperinflation if you are countering deflation?

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u/vertigo88 5h ago

You printed more money. More money in circulation. People know that the $1 you have today is worth less than the $1 printed tomorrow.

So bread prices increase based on that expectation. You buy bread, but it’s $1 more. How would the people buy more bread - by printing money. Cycle repeats. Hyperinflation.

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u/CreBanana0 2h ago

I am not stupid. If we have deflation you can just print a bit more money to counter it.

No need to print too much.

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u/vertigo88 1h ago

So what happens when you print too much? How do you know what is enough?

Let me know how you intend to be the barometer of money supply.

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u/CreBanana0 1h ago

By looking at the inflation metrics???

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u/vertigo88 28m ago

Those are lagging indicators.

By the time you know you’ve printed so much you’ve caused hyperinflation.