Inflation is not result but cause of monetary emission

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Reference no: EM13838562

The argentine economist Fernanda Vallejos, while trying to protect the government because of the inflation, the following:

Inflation is not the result but the cause of monetary emission. As there's inflation (because of other reasons not important here), people need more money and the central bank needs to print more money.

How can you argue against that? As it seems to be the opposite of modern theory on inflation.

Context: This is in Argentina, where it has an important deficit; monetary emission and inflation are around 40%.

Reference no: EM13838562

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