What do you think has a higher chance of creating massive inflation?

[ck4829]

Poll question: What do you think has a higher chance of creating massive inflation?

We're seeing rising food prices all around the world, and we see the occasional argument that the government is supposedly printing money just to print money. But if we did have inflation, where do you think it would come from?

[Statistical]

1. How about an option neither.

Also there is no difference between paper money and electronic money. The money supply is all that matters.

If the money supply expands faster than aggregate output it has a inflationary effect (but not necessarily inflation).
If the money supply expands slower than aggregate output it has a deflationary effect (but not necessarily deflation).

The phrase "printing money" simply means increasing money supply. Today most of that is done electronically via fractional reserves and quantitative easing.

Lastly corporations sitting on money isn't inflationary. If anything it is deflationary. It is in effect pulling money out of the working money supply. Still the deflationary effect is minimal. The transfer of wealth is neither inflationary nor deflationary.

[ProdigalJunkMail]

3. Please stop injecting logic into an emotional topic...

it makes too much sense and people might have to think before answering and then realize they don't know enough about economics to make a reasoned response.

sP

[leveymg]

2. Speculation in currency arbitrage in globalized commodity markets

Anything that can be sold globally is going to steeply rise in price as the Dollar continues to devalue, and speculators in currency arbitrage make a fortune trading on derivatives, gaining many multiples of the price differential if they've managed to manipulate things properly.

[taught_me_patience]

4. Quantitative Easing

is going to inflate asset bubbles.