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Hyperinflation in Zimbabwe happened because the government printed money that wasn't backed by anything meaningful. (What started the Zim economic crisis is a d
by howlgarnish 6y ago
Hyperinflation in Zimbabwe happened because the government printed money that wasn't backed by anything meaningful. (What started the Zim economic crisis is a different question).
But here's the trillion dollar question: if QE consists of printing money and buying hugely inflated tech stocks of dubious value, then is there really a qualitative difference?
- imtringued 6y agoIf hyperinflation ends up happening the central bank can just sell its stocks and thereby reduce the amount of money in circulation. It's entirely risk free.
- neilwilson 6y agoWhat do you see as the difference between the central bank selling its stock and Treasury issuing an identical new one?