We now discern the outlines of why money created out of thin air needn't be as inflationary as expected. If economic activity declines by $1 trillion due to lower incomes, spending, etc., creating $1 trillion out of thin air and injecting it into the economy as monetary and fiscal stimulus is more or less simply replacing the $1 trillion of deflation.
http://www.oftwominds.com/blogmay17/Japan-deflation5-17.html
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment