Comment by ocius

Installments of this type are not very helpful, as they proliferate the notion that the so called "debt" of a nation in its own currency has to be repaid or is in any way bad. The goal of a nation with a sovereign currency should be to keep prices stable while advancing wellbeing in general. Often, this means spending new money, which is framed as debt and said to increase inflation. In reality, new "debt" can both increase or decrease inflation, depending on how the money is spent. There is no direct correlation between increasing the pool of money and inflation. If money is spent on a product that currently has low demand due to a crisis, prices won't be increased and there won't be inflation. If money is spent on a product with high demand, then prices will increase and inflation will worsen. Example: after COVID, construction was down 30% in Germany. Government could have stepped in and spent new money to use the available labour, but instead it remained unused. This way, the labour went to waste, and construction companies, like many other companies, had to charge more for the same services because there was less demand in total, which causes inflation.