What is "it"?

What do you want to solve..

in inflation people tend to buy more

Okay

thats the it

How is that a problem?

It will increase demand right .

it will incrase demand and money in the system which will increase inflation which will increase demand which will increase...

And the bubble bursts?

Like in 2008?

yeah kind of

and banks who coused it are labeled system relevant

But you can increase demand without increasing inflation right?
Just give people more jobs and their salaries will increase

I.e. improve your country

Make more factories

Education etc

well yes more money can also mean more jobs in this case you have prodcut you can uy with the more money

but well imagine its going to fast

than you have crises

and also the ressources on the planet are limited. (well you can grow in fields which do not require new ressources like programming a game or so.

So the growth is a bit artificial, and dosent represent real growth...

growth=?

BIP?

> but well imagine its going to fast
@hororizon44575 .

i meaned if the fast more money comes into the system which does rsult in more demand

i mean new money in the system which results in new products is no Problem its only a problem if new money in the system >>> new products in the system. While its always more than new products.

in Europe EZB (European central bank) has an inflation target of 2%

Hyperinflation?

well not hyper but galloping inflation

So what is this gloating people go on doing about "American financial system will collapse"? I don't think they print money. Ofc now they did because of pandemic

if you give to much creidts at the same time

@justkaus i do not know american situation i live in germany

Ok. So what's the biggest problem you see?

Isint everything fine..

but well the problem in europe is deflation not inflation btw

Except inequality I suppose

Then why the need for people to go to Keynesian theory?

If everything's alright

you rly think everything is alright?

2008

As I said, except income inequality