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comment by Fallexe
Fallexe  ·  1220 days ago  ·  link  ·    ·  parent  ·  post: Dutch cities to experiment with universal cash benefits

Depends on how it is funded,and the state of the economy.

If it is funded by printing money, it could result in inflation.

However, if the economy is experiencing deflation, as Europe is now, it would reduce deflation.

So the answer is preventing inflation is a balancing act. In the USA, the federal Reserve has been printing money to buy assets from big banks (QE) in order to combat deflation, but without causing inflation. They have succeeded.

Herunar  ·  1220 days ago  ·  link  ·  

Ah, right. That makes sense - thanks!