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Ah. What you're saying is that the money will have less value. I got distracted by your weird usage of imaginariness. So this isn't about money; it's about valu
by saraid216 14y ago
Ah. What you're saying is that the money will have less value. I got distracted by your weird usage of imaginariness. So this isn't about money; it's about value.
Yes, austerity results in lowering the value in the economy, which in turn makes it difficult to back money with said lack of value.
- varjag 14y agoNo, what I am saying is that the borrowed money are not backed by value in the economy, and that returning them has to be painful. Now I know Krugman says the value should appear in a puff of smoke once money is thrown in thin air, but that's more a matter of personal belief. Did it help curing the Great Depression? Perhaps; however there are numerous examples of where societies bankrupted themselves with borrowing and spending.