Quote (LA-Leviathan @ Mar 29 2020 10:53pm)
Nothing is worse than shutting down an entire economy, actually maybe printing trillions and trillions of dollars is worse. So yeah....
No one denies that printing money is inflationary but it's all about the trade off. You accept higher inflation down the line to prevent massive unemployment and business failure now.
It creates a poor incentive structure bailing out businesses but most of them are SME's that have been decimated due to a virus destroying demand, not through regular market forces. It's not like these businesses made bad decisions, so give them the loans and let's see how they do when normal market conditions resume.