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jganetsk had already answered your question, you simply have to read what they wrote. Anticipating a question like "What insentive do they have to keep costs lo

jganetsk had already answered your question, you simply have to read what they wrote. Anticipating a question like "What insentive do they have to keep costs low?" they answered before you wrote, when they wrote: "And if you manage to hand people free money and yet the economy STILL doesn't grow, and inflation STILL doesn't rear it's head -- guess what? That's a GOOD thing." Put differently, the government should print money until inflation appears. This is what Keynesian economists have been recommending since 2008, yet most Western governments went in the opposite direction and engaged in long bouts of austerity.

jlj 10y ago
The US has been buying bad debt with borrowed money (QE). There is so much cash in circulation that the banks don't know what to do with it. "So no, the Fed is not printing money. In fact, the Fed is doing much worse than that. In allocating $4 trillion borrowed from banks, it’s supporting the very government spending and housing consumption that got us into trouble to begin with. More to the point, the Fed is financing ongoing economic hardship through its expanded borrowing of bank reserves." http://www.forbes.com/sites/johntamny/2014/03/09/the-fed-is-not-printing-money-its-doing-something-much-worse/#76f682db43a1 http://www.forbes.com/sites/johntamny/2014/03/09/the-fed-is-...
- susan_hall 10y ago
  This idea has been disproven hundreds of times. It is a zombie idea -- no matter how many times it is killed, it just keeps shambling along. Also, the context here was helicopter money -- sending money to people, not banks.
formula1 10y ago
So the solution is "take a chance maybe it works". We already are inflating our money every year. Every year the dollar is worth a little less. This is usually done on purpose, if i remember correctly it desentivises holding cash. By inflating the dollar, people who simply just hoard it make less money than reinvesting. Jganetsk didnt address it. They simply pretended that there is a chance it will work

jlj 10y ago

The US has been buying bad debt with borrowed money (QE). There is so much cash in circulation that the banks don't know what to do with it. "So no, the Fed is not printing money. In fact, the Fed is doing much worse than that. In allocating $4 trillion borrowed from banks, it’s supporting the very government spending and housing consumption that got us into trouble to begin with. More to the point, the Fed is financing ongoing economic hardship through its expanded borrowing of bank reserves." http://www.forbes.com/sites/johntamny/2014/03/09/the-fed-is-not-printing-money-its-doing-something-much-worse/#76f682db43a1 http://www.forbes.com/sites/johntamny/2014/03/09/the-fed-is-...

susan_hall 10y ago
This idea has been disproven hundreds of times. It is a zombie idea -- no matter how many times it is killed, it just keeps shambling along. Also, the context here was helicopter money -- sending money to people, not banks.

formula1 10y ago

So the solution is "take a chance maybe it works". We already are inflating our money every year. Every year the dollar is worth a little less. This is usually done on purpose, if i remember correctly it desentivises holding cash. By inflating the dollar, people who simply just hoard it make less money than reinvesting. Jganetsk didnt address it. They simply pretended that there is a chance it will work