>Money is being printed to maintain liquidity, at the cost of inflation, because a liquidity crisis is considered worse than inflation. I think this is sort of

>Money is being printed to maintain liquidity, at the cost of inflation, because a liquidity crisis is considered worse than inflation. I think this is sort of right, sort of wrong. It's not so much as liquidity in so much as preventing deflation. Though yes we are in a liquidity trap at the moment. https://en.wikipedia.org/wiki/Liquidity_trap#Origin_and_definition_of_the_term https://en.wikipedia.org/wiki/Liquidity_trap#Origin_and_defi... The central banks especially several in Europe lost control of their monetary base. They have gone to negative interest rates + legally requiring pensions funds and similar to purchase these bonds. In other words the governments are robbing the retirees. The government's goal right now is to prevent the recession from becoming a depression. In fact everything has aligned to make this recession turn into a depression. The only reason it doesnt appear to be a depression is because of expansionary monetary policy. >Your (proto-Austrian?) view of economics has long been disproven empirically, as well as theoretically (monetarism and subsquent). Its only purpose now is to sell gold/silver to people who need an oversimplified economic theory that fits their world view. Disproven empirically? Could you provide a link for me to read on this? I do understand that Austrian school is criticized and not generally used but I dont feel like it has been disproven.