7 ms·
Because that’s how you get runaway inflation. Printing money doesn’t add value to the economy. It spreads the existing value over more currency. Countries that
by gshdg 7y ago
Because that’s how you get runaway inflation. Printing money doesn’t add value to the economy. It spreads the existing value over more currency.
Countries that made this mistake during the Great Depression include Weimar Germany.
- zxienin 7y ago> Because that’s how you get runaway inflation That's the common view yes. For 6 months? In current context, value is psychological shoring. > Countries that made this mistake during the Great Depression include Weimar Germany. How long was printing money period? 1-2 years?
- mtmail 7y agoYes, about 2 year https://en.wikipedia.org/wiki/Hyperinflation#Germany_(Weimar_Republic) https://en.wikipedia.org/wiki/Hyperinflation#Germany_(Weimar...
- zxienin 7y agoI don't find this Weimar war time hyperinflation comparable to current state. In opening text, there is the context of keeping this time bound. Plus globally, there is still economic activity (ones with non human contact). Even they risk getting hit by cascaded effect, not for lack of demand, but lack of liquidity in system. This is avoidable.
- michaelyoshika 7y agoFor the US itself, the inflation won't be much due to the fact US dollar is a world currency and other economies will consume most part of the inflation. You'll see people's lives in other parts of the world suffer more.