At 13:44 08/09/2016 +0000, PILLINGER Rebecca wrote:
>How quickly the inflation happens is important, because the compensation
>for each minute's (or even hour's) labour doesn't arrive in your bank
>account immediately you complete it. ....
Yes, I accept that - which is why I wrote "Things obviously happen
transiently immediately after an increase in available currency, but I
would think that a 'steady state' is probably usually achieved fairly
quickly.".
In the hypothetical scenario I was describing, we would be talking
essentially about a 'step inflation', due to the printing of money, rather
than a gradual process - and if the system worked 'ideally' (i.e. the
government didn't decide to hoard much of the 'new money'!), I would have
thought that the consequent compensating rise in income would follow very
quickly.
Of course, as has been said, the government could always decide to
manipulate taxes/benefits etc. so as to distribute the new money
differently from the previous situation - but that is a different matter
and could be done even if no new money was printed.
Kind Regards,
John
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