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Economy's response to stimulus


lambdo

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I still don't get why more stimulus is bad for the economy?

The U.S could print trillions of dollars and only have it devalue its currency..inflation isn't going to do away with the greenback. Guaranteed(or more then likely) they will have takers of all the debt notes.

 

So..my question is what if the U.S announced 100 trillion in stimulus?

 

Wouldn't all the G20 respond by stimulus in the same fashion? (to ensure change in currency doesn't detract from import/export)

 

Then who cares how much money is printed off? If inflation (or devaluation )isn't an issue?

 

 

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I still don't get why more stimulus is bad for the economy?

The U.S could print trillions of dollars and only have it devalue its currency..inflation isn't going to do away with the greenback. Guaranteed(or more then likely) they will have takers of all the debt notes.

 

So..my question is what if the U.S announced 100 trillion in stimulus?

 

Wouldn't all the G20 respond by stimulus in the same fashion? (to ensure change in currency doesn't detract from import/export)

 

Then who cares how much money is printed off? If inflation (or devaluation )isn't an issue?

 

 

Hey it worked well for the Weimar republic.

:)

WSS

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How about the economy of Zimbabwe?

 

 

Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation.

 

HERE

 

The power-sharing government formed in February 2009 has led to some economic improvements, including the cessation of hyperinflation by eliminating the use of the Zimbabwe dollar and removing price controls. The economy is registering its first growth in a decade, but will be reliant on futher political improvement for greater growth.

 

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