There is no limit to fiat money creation from "summary" of The Fiat Standard by Saifedean Ammous
In the fiat standard, governments have the power to create money out of thin air, unconstrained by any physical limitations. This ability to create money at will distinguishes fiat money from commodity money, which must be mined or produced through labor. Unlike gold or silver, which have natural scarcity, fiat money can be created in unlimited quantities. The lack of a constraint on money creation means that governments can print as much money as they want to fund their spending. This is often done to finance wars, bail out failing banks, or stimulate economic growth. The temptation to create more money is ever-present, as it provides an easy solution to financial problems without the need for difficult choices or sacrifices. The consequence of unlimited money creation is inflation, as the value of each unit of currency decreases when there is more money in circulation. Inflation erodes the purchasing power of money, leading to rising pr...Similar Posts
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