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At a given instant in time, each unit of currency has to be owned by someone. So if the money supply increases by 10%, by the pigeonhole principle, there is at least one entity with 10% more money in one of their accounts.

Now I'll buy the idea that isn't necessarily going to cause shortages and price rises in consumer goods, but the idea that it doesn't cause changes in asset prices is too much. Are these rich people supposed to be idiots? There is no return on cash and new money is being created at a fast clip.



Pricing is a function of both supply and velocity.

Increasing money supply without any change in velocity or other exogenous factors is inflationary for asset prices, etc.

Real-life, however, is not a vacuum [0]

[0]: https://fred.stlouisfed.org/series/M2V




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