Economists agree: Print. Money. Now.
It is no secret that economists Tyler Cowen and Paul Krugman have profound differences on the proper role of how government should manage the economy. Over the course of the ongoing economic crisis, they've engaged in an enlightening debate about such topics as the effectiveness of Keynesian fiscal stimulus policies via their respective blogs and New York Times columns. The libertarian-minded Cowen is a fiscal stimulus skeptic; Krugman, notoriously, is not. Full Story »
Posted by Kaizar Campwala
As the article pointed out, printing money causes inflation. No surprises there. A larger quantity of money is equal to the same (or now less) goods and services. Inflation makes any money you have in the bank or from your pay check worth less. In other words, printing more money steals money from your bank and lowers your wages. Another aspect of the government using the tax payer to bail out the banks; all part of the pyramid scheme aspect of our economy and all pyramid schemes collapse as this one did. It doesn't matter how much money there is. It is always equal to goods and services. Increase the money supply at the same rate that goods and services increase and we should have zero inflation.