there is a third and best solution . monetary reform: parint new money: give the bilionaires and milionaires up to 100000 $ , nationalize the banks and the most important industries of the economy, spend money on true education and tell the people to believe in themselves. As simple as that.
It's actually quite simple. Inflation occurs when aggregate demand outstrips the productive capacity of the real economy. Fiscal deficits are fine as long as this constraint is not reached. Any spending - via government borrowing and spending or private sector credit fueled debt or export demand - can create inflation. Governments with their own currency like the US UK and Japan (not Greece)can always pay their debts. Whether or not deficits cause inflation depends on the state of the real economy. Japan is a case in point. Big fiscal expansion and debt. Zero inflation. Hyper-inflations occur rarely and only when you decimate the underlying productive capacity of your economy THEN print up money. Like Germany losing its industrial territories post WW1 or Zimbabwe mismanaging farming.
there is a third and best solution . monetary reform: parint new money: give the bilionaires and milionaires up to 100000 $ , nationalize the banks and the most important industries of the economy, spend money on true education and tell the people to believe in themselves. As simple as that.
It's actually quite simple. Inflation occurs when aggregate demand outstrips the productive capacity of the real economy. Fiscal deficits are fine as long as this constraint is not reached. Any spending - via government borrowing and spending or private sector credit fueled debt or export demand - can create inflation. Governments with their own currency like the US UK and Japan (not Greece)can always pay their debts. Whether or not deficits cause inflation depends on the state of the real economy. Japan is a case in point. Big fiscal expansion and debt. Zero inflation. Hyper-inflations occur rarely and only when you decimate the underlying productive capacity of your economy THEN print up money. Like Germany losing its industrial territories post WW1 or Zimbabwe mismanaging farming.
Sefra Correa Marielyn Correa Wilson Correa #money #gold #paisa #debt #value