Does the Quantity Theory of Money imply that the hoarding of wealth causes a need for a greater supply of money? In the US where I live, certain kinds of people often attribute inflation to the fact that the government is constantly creating more money (and I don't know if this relationship is true), which they in turn attribute to the fact that the government spends "too much" money (and by making this part of their argument they reveal that their goal is to reduce social welfare spending by the government). But, if a lower velocity of money necessitates a greater supply of money, and hoarding money reduces its velocity, then might it be the case that inflation is caused not by spending but by hoarding (i.e., by NOT spending)?
Great lecture
Thanks from 🇺🇸☮️
Does the Quantity Theory of Money imply that the hoarding of wealth causes a need for a greater supply of money? In the US where I live, certain kinds of people often attribute inflation to the fact that the government is constantly creating more money (and I don't know if this relationship is true), which they in turn attribute to the fact that the government spends "too much" money (and by making this part of their argument they reveal that their goal is to reduce social welfare spending by the government). But, if a lower velocity of money necessitates a greater supply of money, and hoarding money reduces its velocity, then might it be the case that inflation is caused not by spending but by hoarding (i.e., by NOT spending)?
@@Dorian_sapiens 90% of money is created by private banks. Not by the gov. When a bank gives a loan, it creates money.
@@TaimurRahman-English Aha, thank you for the correction.