Quote from: South Park on April 24, 2020, 09:52:32 PM

Quote from: Darker45 on April 22, 2020, 04:19:09 AM

Quote from: Maestro75 on April 19, 2020, 05:27:43 PM

Quote from: avikz on April 09, 2020, 02:44:14 PM

~snip~

Me too I think it is a bad idea to print more money because it will mean so much money in circulation. This is what causes inflation. If there is more money and India does not have a strong fiscal policy it will mess up the economy and Indians will be the ones to suffer at the end.

Printing more money per se is not that bad. Especially if it is done as an extreme measure to something that is extremely urgent such as what is currently happening to almost all countries. Also, it is being done all around the world. This is not peculiar to India. For as long as it is well-managed, I believe it will do more good than bad.

This is not the only thing that causes inflation. There are so many factors that cause inflation. And, most importantly, inflation is actually not to be fully avoided. It is designed to be there. It should be there, albeit closely managed.

The problem is that printing money has gone to something we do in extraordinary circumstances to a standard tactic, governments now print a lot of money for no reason at all

Yeah, I bet they do. Well, that has always been the downside of fiat, and in the hands of some people with questionable integrity.

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and now when printing money could be used as a way to stimulate the economy to get off this difficult circumstances they find out this could damage the economy as well, if this crisis last for a lot longer I am not so sure the economic system will survive and probably a big reform will come during the next years.

Printing money out of thin air is one standard economic stimulus, but it is not everyday that we need it. It is not everyday that we are facing a hard economic struggle. That is basically a drastic measure that is much needed in dire times. Yes, it may hurt the economy in the long run, but that could really be needed in times like these. After all, that economic long-term negative effect could be remedied. In the meantime, the majority of the populace do not have food on the table and are not allowed to work either; that is valid enough reason to print more money.