Printing Money Can't Replace Real Savings : vimarsana.com

Printing Money Can't Replace Real Savings


Printing Money Can’t Replace Real Savings
April 14th 2021, 11:53 am
If monetary stimulus could strengthen real economic growth, then world poverty would have been eliminated a long time ago
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Between January 1970 and December 2020 on average changes in money supply preceded changes in real economic activity by fourteen months, as depicted by real gross domestic product (GDP).
Based on this it is tempting to suggest that a strengthening in the growth rate of money supply will result in the strengthening of real economic growth.
Conversely, a weakening in the growth rate of money supply will set in motion a decline in real economic activity.

Related Keywords

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