Why can't we just print money (dumb question;simple answer?)
Discussion
I'm no economist as the question demonstrates, but i get of course you cannot just create money without inflationary pressures...
.... but in a normal economy, and this won't be normal. People can't spend when locked down, and can't even order online when supply chain moves toward the essentials. And they can't hoard if money is used to keep afloat those who would otherwise fail to pay rent/mortgage, or stay solvent.
So - 330bn is a lot. Taking effectively 50% cut on business rates for a year is a lot - how *technically* do they do it, and is printing (figuratively) money how it's done? And can that go further without creating long term damage and further debt?
QE /insurer of last resort / creating bonds if that's not the same as QE - all things you hear but don't necessarily understand; why isn't that the approach...or is it?
In my experience of PH, in between people with 10k posts being knobs for the sake of it, and the odd patronising one liner, there is bound to be a proper economist out there who can get me some schooling. I've got more time on my hands these days to learn for some reason...
.... but in a normal economy, and this won't be normal. People can't spend when locked down, and can't even order online when supply chain moves toward the essentials. And they can't hoard if money is used to keep afloat those who would otherwise fail to pay rent/mortgage, or stay solvent.
So - 330bn is a lot. Taking effectively 50% cut on business rates for a year is a lot - how *technically* do they do it, and is printing (figuratively) money how it's done? And can that go further without creating long term damage and further debt?
QE /insurer of last resort / creating bonds if that's not the same as QE - all things you hear but don't necessarily understand; why isn't that the approach...or is it?
In my experience of PH, in between people with 10k posts being knobs for the sake of it, and the odd patronising one liner, there is bound to be a proper economist out there who can get me some schooling. I've got more time on my hands these days to learn for some reason...
Recently discussed in depth. It also highlighted the importance of decent thread titles, you might have found it with a better one!
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
bristolbaron said:
Recently discussed in depth. It also highlighted the importance of decent thread titles, you might have found it with a better one!
https://www.pistonheads.com/gassing/topic.asp?h=0&...
ah thanks - and yes, "educate me" isn't the most obvious title. https://www.pistonheads.com/gassing/topic.asp?h=0&...
And i get the basics argumentation in that thread - you devalue everything by just artificiality creating more means to account for value.
But that thread even a week ago was a different world. Where you have a world where we just *cant* spend, but need to meet basics to keep roofs over head, and food on table - do all those arguments still apply if we , for example, operated a loan and means tested means of helping millions meet bills whilst they stay at home, but those loans are essentially covered by money we "make up".
Economically illiterate maybe, but would love to know more on why!
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