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One way of looking at this is from an accounting perspective: Printing money is tantamount to debt (== liability). If there's sufficient corresponding economic
by BjoernKW 6y ago
One way of looking at this is from an accounting perspective:
Printing money is tantamount to debt (== liability). If there's sufficient corresponding economic value and future economic growth (== asset) on the other hand such debt isn't necessarily a problem.
The money "printed" right now to counter the effects of the current economic crisis essentially is a bet on the future. If that money is invested appropriately and intelligently this investment will stimulate future economic growth, which in turn can be used to offset debt (for example via future tax revenues).
Haphazardly expanding the amount of money available to the economy without a proper strategy. however, usually leads to inflation and poverty and the economy not being able to keep up with the devaluation of the currency anymore.