Carl Spackler

Let's Just Say It: Print More Money

I agree with a lot said in here, but you have another scenario that could be reached by printing money - stagflation. That means economic stagnation with inflation. In fact, even though you hyper-inflate the money supply, in real dollar terms, the economy goes nowhere. Just imagine growth rate of 8% with 10% inflation. Funny that no one considers this as a possible response to all the helicopter drops the Fed is doing. When I studied economics, this was to me by far the worst scenario (even over deflation). With deflation, you can always inflate the economy by printing cash, but with stagflation you have to deflate the money supply and at the same time try to pick up the economy - a herculian task.