Will you please resign and let someone else take over management of the economy?
Economists, if the $2 trillion stimulus does not cause significant inflation
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The money is given to people; it's given to supply side who then use it to buy back stock, increase leverage, etc. That's why we've never had any inflation problems with an expanding money supply. All that money is locked into the elites' bank accounts. If you want to see inflation, you'd have to tax the wealthy and then give it to regular people who then buy stuff.
Will you please resign and let someone else take over management of the economy?
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The bill doesn't let them use the money for stock buy backs
The money is given to people; it's given to supply side who then use it to buy back stock, increase leverage, etc. That's why we've never had any inflation problems with an expanding money supply. All that money is locked into the elites' bank accounts. If you want to see inflation, you'd have to tax the wealthy and then give it to regular people who then buy stuff.
Will you please resign and let someone else take over management of the economy?
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Did the fed lower interest rates? answer: hell yes. Will firms increase debt to buy back stock? answer: hell yes.
The bill doesn't let them use the money for stock buy backs
The money is given to people; it's given to supply side who then use it to buy back stock, increase leverage, etc. That's why we've never had any inflation problems with an expanding money supply. All that money is locked into the elites' bank accounts. If you want to see inflation, you'd have to tax the wealthy and then give it to regular people who then buy stuff.
Will you please resign and let someone else take over management of the economy?
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Nothing will stimulate inflation any more. We've got the most lethargic responsiveness to inflationary pressure one could imagine, and its been persistent for a decade.
Really makes ya question inflation rate targeting when its become so inherently stable and low.. QE in Europe barely raised it in the end.
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Assuming not a troll, you are missing the other half of the equation
The people getting this money, especially the boosted unemployment insurance, suddenly have no money. Thus this is replacing buying power taken out of the economy. And that money is spread out thinly among people eating out less for a month, no reason this will cause inflation
If a $2 trillion injection (combined with a $6 trillion from Fed) doesn't cause inflation, will you please stop pretending you know anything about inflation, economists?
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right now we are having deflation, so the package will kind of counteract that.
a more realistic concern is inflationary pressure once you allow all businesses to suddenly open (in a V-shape curve) and people are consuming are able to consume like crazy. then the fed would have to tighten monetary policy soonhowever, its better to have inflation and deal with that later than to let the economy crash (in an L-shape curve)