Fiscal rectitude has gone out the window

D

Duke of Marmalade

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Fiscal rectitude has gone out the window, rightly. I am not an economist but would be interested in any views on how that will pan out. In other instances fiscal incontinence has led to massive inflation and soaring interest rates.
 
I think we are going to see quantitative easing on a scale never seen before at a global level. The US and UK are already talking about the reversal of taxes to give people a direct payment. Eventually all central banks will have to get money directly to people. This isnt a banking crisis. This isnt a liquidity problem. The current system of using banks in the middle wont be sufficient. Will it lead to hyper inflation? I dont think so but who knows anymore. This is new territory for everybody.
 
What's clear is this fantastic illusion of money that we have achieved to allow us barter with each other and create real wealth such as infrastructure and food and clothing producing is going to be tested more than ever in the next few months or more. I have always marvelled at how we accept payment of printed bits of paper for goods and services because we trust that someone else will take thus printed paper when we need same.
 
From what I see and understand it appears that many countries will or are consider paying those that lost their jobs a high percentage of their original wage prior to the crisis.

Fantastic as it will give people some security, some respite, promote some spending, all of which will hopefully lessen the amount of businesses that go to the wall.

What I am wondering is - If most countries/currencies do this can notable inflation (maybe even hyperinflation) be avoided?
 
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