EconomicPolicyJournal.com: Can Printing Money Out of Thin Ai

EconomicPolicyJournal.com: Can Printing Money Out of Thin Air Ever Be a Good Idea?


Sunday, December 27, 2020
Can Printing Money Out of Thin Air Ever Be a Good Idea?
I am not making any case for Fed pumping obviously! Goodness, I am on record for abolishing the Fed! And, yes, I agree that no amount of "inflation" is acceptable and it's entirely correct that wage and price controls were imposed (Nixon) when inflation rates were quite low and this is always a danger given political insanity. With the massive monetization currently, the risks of accelerating inflation are certainly substantial.
However, I was making a more modest set of arguments which I don't think you effectively rebutted. My gym closed for 3 months. No output and no income but substantial overhead costs. Savings and Working capital depleted and bank loans impossible. Lockdowns over BUT only a few customers dribble in. Working capital required now to cover overhead, hire back instructors, and start new marketing efforts to restore customer base.

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