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| Name | Can the U.S. print MONEY forever? - Why hasn't the U.S. experienced hyperinflation? |
| Video Uploader | Video From Economics Nation |
| Upload Date | This Video Uploaded At 24-07-2022 14:00:15 |
| Video Discription | The creation of money by governments and their central banks becomes a very appealing solution, especially in times of severe economic crises such as the one the world experienced in 2020 due to a pandemic. But history has shown that printing money in excess almost always ends badly. You don't have to go very far back to know the consequences of turning on the money printer. The best known and most recent example is that of Venezuela, where public spending began to be financed by the Central Bank with the issuance of banknotes; the result is that Venezuela experienced hyperinflation for more than 4 years. The country closed 2020 with an inflation rate close to 4,000%. And this happens because if in a country there is a certain amount of goods and in a short period of time the amount of money in the economy increases, prices will increase because there is much more money than before but the same amount of goods. Let's think that most companies and factories cannot increase their production capacity immediately, so the only alternative to an increase in demand is to raise prices. The consumer tries to anticipate the price increase and quickly gets rid of money, so the Central Bank must print more bills because they are used faster and faster, which generates higher inflation and the cycle repeats itself. If the United States has issued trillions of dollars in 2020 and 2021, why has it not experienced hyperinflation? #economicsnation #fed #printingmoney |
| Category | Education |
| Tags | economics nation | economics nation us | economics nation fed | fed money | interest rates fed | rising interest rates | fed printing money |
