When the government borrows from people that does not create inflation because no new money has been put in circulation
however
when the government (or anyone ) borrows from the banks the banks lend monies they do not have so they are making up money in the form of credits so why does this not cause inflation ? and why would the government borrow made up credits when they can make their own credits up at 0 % interest?
however
when the government (or anyone ) borrows from the banks the banks lend monies they do not have so they are making up money in the form of credits so why does this not cause inflation ? and why would the government borrow made up credits when they can make their own credits up at 0 % interest?