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Re: Need an economist on money creation?
Your friend is right, currency production and economic growth are not tied together. However, in an economy like the US where the dollar is tied to the economy, the relative strength of the currency unit IS tied to economic growth.
I suppose the points that the individuals in the article were trying to make was this: If you intend to keep your currency stable, and you are printing more currency, then your economy must grow at the same rate you print currency.
There are quite a lot of reasons why you want the relative strength of your currency to remain stable. I won't get into them now, but when you hear stories about wheel barrels of money being needed to buy one loaf of bread, that is the gist of it.
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