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a curious thought experiment about money supply vs velocity of money:


Imagine the Gov't makes known to the public that it has printed $5 Trillion BUT it will be hoarded in a vault that will never be opened. It will never be made available to the public or private sector and the gov't itself can only tap this resource in the most dire of emergencies.
What happens to the price of dollars? Does the mere knowledge of the existence of such a sum of dollars cause inflation even though it will almost never be touched and used?
Or does the fact that it is indeed inaccessible negate the fact that it exists in terms of its effect on money supply and inflation?

I really have no idea, but I tend to think that the mere knowledge of its existance will offer some downward pressure on the dollar