Printing money defaces the dollar to the world. You can never create value, even by printing money. The system will rebalance because nobody works for free and everything is sold to the top bidder.
However, it can destroy or create value, depending on how its done and why. Words like 'never' and 'always' are rarely true in economics. Value is being destroyed through debt defaults, layoffs, and bankruptcies on a massive scale right now. Inflation would almost certainly destroy less value.
My expectation is we won't get out of this without either:
(1) An economic collapse
(2) Cleverness
(3) Inflation, to where post-pandemic prices are a small multiple of where they are today (e.g. 2-10x).
(4) Mass death and disability (people underestimate the economic impact of having a big portion of the population disabled by COVID19 for the rest of their lives)
Inflation seems like among the lesser of the possible evils right now.
woofie11|5 years ago
However, it can destroy or create value, depending on how its done and why. Words like 'never' and 'always' are rarely true in economics. Value is being destroyed through debt defaults, layoffs, and bankruptcies on a massive scale right now. Inflation would almost certainly destroy less value.
My expectation is we won't get out of this without either:
(1) An economic collapse
(2) Cleverness
(3) Inflation, to where post-pandemic prices are a small multiple of where they are today (e.g. 2-10x).
(4) Mass death and disability (people underestimate the economic impact of having a big portion of the population disabled by COVID19 for the rest of their lives)
Inflation seems like among the lesser of the possible evils right now.