4 ms·
To be a little flippant about this... "money printer go brrr" (as the meme goes). We can fund it through debt that we have to pay back (eg, issuing government
by Eridrus 7y ago
To be a little flippant about this... "money printer go brrr" (as the meme goes).
We can fund it through debt that we have to pay back (eg, issuing government bonds), but we can also literally print money.
Printing money can have inflationary effects because money is worth just a tiny bit less when there is more of it. But in a downturn this is generally a less important concern. There's no really simple answer for when printing money is fine and at what levels and when it is not, particularly since it is not a settled topic. The recent consensus generally seems to be that printing money in recessions is good though.