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"The moralists insist it’s irresponsible for us to just print more money." Actually economists, not moralists, are against this; because excessive pumping of m
by hardik 18y ago
"The moralists insist it’s irresponsible for us to just print more money."
Actually economists, not moralists, are against this; because excessive pumping of money in they system in this way will cause hyper-inflation.
Classical (and rather extreme) example of why printing money should be kept under check: Zimbabwe.
- sethg 18y agoEveryone agrees that excessive pumping of money into the system will cause inflation. The problem is figuring how how much is, in fact, excessive. And in a recession, you can't just say "let's err on the side of conservatism and not pump anything in" because there's the risk of deflation on the other side. "We stand today at a crossroads: One path leads to despair and utter hopelessness. The other leads to total extinction. Let us hope we have the wisdom to make the right choice." —Woody Allen
- hardik 18y agoWell, the fact that interest rates are nearing zero does indicate how must is not enough.