The link between the two is important. An erosion of purchasing power only occurs during the ascent in the business cycle. When there is a decline, purchasing power goes up.
Money helps to drive capital, equating to economic increases in output if the economy can handle it. This is where property rights, education of population, technical capabilities and other attributes to a nation is crucial.
Comparing the US to Argentina, for example, is foolish. The latter had 100 years of socialistic decline due to Peronism.
Spot on. Money can fuel capital, but only in the right environment—property rights and education are key. Argentina’s struggles with Peronism show how systemic issues can derail economic output, unlike the US context