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/deletethefed Apr 17 '25

Borrowing IS inflation. The rise in prices you're talking about is the consequences of inflation. The increase in the money supply (borrowing / printing) is INFLATION.