Money printing is not neutral. When an economy isn't generating real growth in goods and services, creating new money doesn't create new wealth—it simply redistributes existing wealth.
Those who receive newly created money first can spend it before prices adjust. By the time that money spreads through the economy, prices have risen, leaving people with fixed incomes or those who receive the new money last with less purchasing power.
In other words, the gains of the first group come at the expense of the second. This is known as the Cantillon Effect—one of the key reasons why inflation disproportionately hurts lower-income households.
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@RezaMacroEdge
July 14, 2026 323 1
