M2 Money Supply + CDs

[princedodi]

The commonly held theory is that elevated currency levels spur growth and have an inflationary effect, leading to higher interest rates.


how it has a good effect on economy"grouth" and after that we said that it has an inflationary effect which is a bad thing

 

[Enivid]

That depends on how "higher" money supply becomes. If it is an uncontrolled growth, then it probably means a hyperinflation, which is a bad thing. If it is slow and steady, it probably means normal economic growth.