Fundamental differences between monies printed

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In conventional economic theories, we are told that when a government prints money, it exposes itself to inflation because there will be more money in the system to chase fewer goods, causing the money to lose its value.

However, if we can think beyond these theories, and accept the fact that these theories were developed by humans; individuals with brain capacities same as ours and we also have the capacity to device alternative models to solve our own problems, then, we can start to ask questions like:

How can there be fewer goods in the system if the money printed is used as an incentive for innovation and production rather than serving as an object for demanding goods and services?

What is the central duty of a sovereign government when it prints paper and calls it money?

What are the fundamental differences between monies printed into an economy and those borrowed into the same economy?

The above is a concern. As a student of monetary economics with deep understanding of money,

Show how the concerns may be invalid or otherwise while addressing the questions raised above.

Reference no: EM132538587

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