Post
Topic
Board Economics
Re: COVID AND INDIAN ECONOMY
by
abhiseshakana
on 25/06/2020, 05:37:23 UTC
but printing money is not as bad during a crisis.

It can increase the problem of inflation that is usually around with time of crisis.

Print money doesn't always bring inflation. Americans print inflation below 3-4%. When subprime mortgages occur that cause unemployment and huge losses and with the fed printing money the problem does not last long. Japan is also diligent in printing money to accelerate development and also can not be inflation instead even deflation because its citizens are diligent in saving. China is also a country that prints money with a layered project guarantee and is combined with the OBOR strategy so that China can print renminbi for the project but get foreign exchange in dollars.

Printing money will bring inflation when printing money is used to pay debts or for consumption. Printing money must not be done with the aim of creating demand. Print money must be for real projects and productive industries. In addition, in a crisis situation, money printing must be combined with other strategies such as maximizing local natural resources to create an independent industry.