Comments on: National Debt, Printing Money and Inflation http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/ Economics Blog - current events and economics essays Thu, 18 Mar 2010 19:46:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Japan’s “Lost Decade”… « The Old Gray Cat in Exile http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/comment-page-1/#comment-2788 Japan’s “Lost Decade”… « The Old Gray Cat in Exile Tue, 03 Mar 2009 18:59:33 +0000 http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/#comment-2788 [...] gold and hide it in the mattress, and then buy wheelbarrows. Pretty soon people will need them to carry their money around in, and I can barter them for [...] [...] gold and hide it in the mattress, and then buy wheelbarrows. Pretty soon people will need them to carry their money around in, and I can barter them for [...]

]]> By: pj http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/comment-page-1/#comment-2430 pj Mon, 26 Jan 2009 13:01:37 +0000 http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/#comment-2430 Would printing money affect the valueof the pound against other currencies? Would printing money affect the valueof the pound against other currencies?

]]> By: Steadman http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/comment-page-1/#comment-2329 Steadman Wed, 14 Jan 2009 17:40:09 +0000 http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/#comment-2329 what if the money wasnt going into direct circulation. What if it were used to purchase say equipment to support manufacturing or to build new plants to create jobs. This money wouldnt necessarily go to the average consumer and therefore wouldnt necessarily affect the availability of money to buy goods what if the money wasnt going into direct circulation. What if it were used to purchase say equipment to support manufacturing or to build new plants to create jobs. This money wouldnt necessarily go to the average consumer and therefore wouldnt necessarily affect the availability of money to buy goods

]]> By: Printing Money in a Recession — Economics Blog http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/comment-page-1/#comment-1988 Printing Money in a Recession — Economics Blog Wed, 26 Nov 2008 08:46:46 +0000 http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/#comment-1988 [...] See also: Printing Money [...] [...] See also: Printing Money [...]

]]> By: Ralph Musgrave http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/comment-page-1/#comment-1685 Ralph Musgrave Mon, 20 Oct 2008 17:57:52 +0000 http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/#comment-1685 Printing extra money over a period of years does not matter so long as the addition to the money supply is about the same as the expansion in the real economy. Expand an economy by 5% and that economy will probably need 5% more money to lubricate it (other things being equal). An interesting aspect of the 2008 credit crunch is that the conventional way of boosting demand (reducing interest rates) is singularly inappropriate because this would increase borrowing and it is precisely excess borrowing that has got us into the mess. So what to do? The answer is print money. This could easily be inflationary a year or two down the road, but this problem can be countered by various means: e.g. banning 100% mortgages, tighter bank regualtion (something that will come anyway). Willem Buiter (ex member of the Bank of England Monetary Policy Committee) favours banning mortgages of more than 80%. Printing extra money over a period of years does not matter so long as the addition to the money supply is about the same as the expansion in the real economy. Expand an economy by 5% and that economy will probably need 5% more money to lubricate it (other things being equal).

An interesting aspect of the 2008 credit crunch is that the conventional way of boosting demand (reducing interest rates) is singularly inappropriate because this would increase borrowing and it is precisely excess borrowing that has got us into the mess. So what to do? The answer is print money. This could easily be inflationary a year or two down the road, but this problem can be countered by various means: e.g. banning 100% mortgages, tighter bank regualtion (something that will come anyway). Willem Buiter (ex member of the Bank of England Monetary Policy Committee) favours banning mortgages of more than 80%.

]]> By: The Problem with Printing Money — Economics Blog http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/comment-page-1/#comment-1282 The Problem with Printing Money — Economics Blog Thu, 07 Aug 2008 10:57:44 +0000 http://www.economicshelp.org/blog/economics/national-debt-printing-money-and-inflation/#comment-1282 [...] National Debt, Printing money and inflation [...] [...] National Debt, Printing money and inflation [...]

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