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I’m far from an expert, but can the US Fed really print more money? Didn’t I hear that something like 30% of the USD in circulation today didn’t exist at the st
by jen729w 5y ago
I’m far from an expert, but can the US Fed really print more money? Didn’t I hear that something like 30% of the USD in circulation today didn’t exist at the start of 2020?
It has to stop somewhere. Doesn’t it? (Genuine question!)
- yaacov 5y agoThe limiting factor is inflation! If we get massive deflation from a “dollar short squeeze” (which I don’t actually think is likely but it’s what OP was suggesting) that means we need more inflation, which printing money would produce.
- mym1990 5y agoThis is just treating a symptom, and not the underlying cause(whatever that may be).
- seoaeu 5y agoWhen the symptom is having too much money to spend, it isn't clear that you want to "treat" the cause in the first place!
- majormajor 5y agoPrinting money doesn't necessarily create inflation if it doesn't go into circulation. My understanding is that "printing money" with a jobs program would be more effective at stimulating spending that, say, "printing money" with cheap interest rates (which might just mostly ultimately go into people's bank accounts as they sell assets to people borrowing the cheap money).
- polyomino 5y agoTechnically it doesn't stop, but they are optimizing a complex system, and want to mitigate negative effects on their measures.
- rossdavidh 5y agoWell, it doesn't _have_ to, ask Zimbabweans. But there are real reasons they would not want to print forever.
- quickthrower2 5y agoQE and printing are different though
- hndamien 5y agoNot in substance.
- sumedh 5y agoWhat is the difference?
- quickthrower2 5y agoQE injects money via purchase of bonds / assets.