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EconomicPolicyJournal.com: What Does Money Printing Do To An Economy?


Tuesday, December 29, 2020
 
My debate with Dominick Armentano continues.
Dominick writes:
I m NOT calling for new money printing. I am making a classroom argument (not advocating a policy) that the new money to the gym owner increased SUPPLY (not demand as you assert) and arrived without any crowding out since neither prices nor interest rates riseRW response:
I am confused here. If there is no money printing, where is the new money coming from, even if this just is a classroom argument ? What is the purpose of this classroom argument if not to understand policy options? How can we understand options if a key factor, that new money has to come from somewhere, is not considered? ....

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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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