Would it cause inflation if the Federal Reserve printed a bunch of money and gave to someone secretly?

Ask an Economist
Question: 

It's said that printing more money causes inflation. What if the Federal Reserve printed a bunch of money and gave to someone secretly? How would that cause inflation? Thank you

Answer: 

If the central bank printed some money and "gave to someone secretly" and that person did not spend it, nothing would happen. If they did spend it, it would add to the money already in circulation, which may or may not (if output went up) cause prices to go up.

Answered by:
Tags: 
Last updated on March 9, 2018