Economists only: What is the downside of printing and distributing trillions of dollars in an environment in which inflation is nil and demand is low? Who loses and when? @joshgans
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Inflation won't be across the board, prices will rise where people can spend.
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Housing
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What do you do when demand is going to catch up with the Trillions injected in economy ? Especially when the offer will be lower - due to lock-downs?
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Nobody, the law of demand rules all.
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The workers.
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Models are tenuous. I heard somebody say you would be a Trillionaire If you could come up with an accurate model.
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"All models are wrong, many are useful, some are deadly." -
@nntaleb
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Inflation is not an immediate effect, it will happen over time as more dollars chase the same amount of “stuff” Immediate effects of a crunch like this are deleveraging and flight to safety, deflationary pressures that strengthen USD short term (as we saw on March 12, 2020)
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There are good arguments against doing too little and also against doing too much. There is less of an argument against doing as much as you can short of risking bad inflation down the road. Assuming we can identify that safe(er) zone.
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Demand can be down 50%, but if you increase the money supply enough you will still see increased prices.
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