The Dangers of Money Printing Printing money can lead to disastrous consequences for an economy, as seen in Germany and Venezuela. However, the United States has printed trillions of dollars without experiencing hyperinflation.

Quantitative Easing Explained Quantitative easing is a method used by the US Federal Reserve to lower interest rates and increase the supply of dollars in order to stimulate economic growth. This increases purchase power which leads to increased demand for products eventually leading towards inflation.

How US Money Printing Affects Other Countries' Inflation Rates US quantitative easing causes inflation in other countries through two ways - increasing demand for imported goods which raises their prices domestically, and currency appreciation that makes exports less competitive internationally. Despite this effect on other nations' economies, the US dollar remains immune due its status as reserve currency.