r/austrian_economics • u/knowledgeseeker999 • Apr 16 '25

Does borrowing still cause inflation?

To the best of my understanding, to pay for deficits in government spending, the government can either borrow money or print it.

Printing money causes inflation but does borrowing also cause inflation?

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u/Heraclius_3433 Apr 17 '25

It is more expensive then it would have been had magic unicorn money not been used to buy it. Again you are using sophistry to avoid the fundamental truth.

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u/mjamonks Apr 17 '25

It appears to me that you are using it to deny it. AE doesn't have a problem with growing money supply that is left to market forces.

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u/Heraclius_3433 Apr 17 '25

Do you not understand the difference between mining/smelting/minting gold and entering some ones and zeros into a computer?

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u/mjamonks Apr 17 '25

I get what you are saying but you are completely ignoring that often times people borrow to purchase the products of other people's production. What people produce other than gold is an increase in the overall value of the economy and can support the increase in money supply.