have to be printed, right?, but this 'new' money could be defined as 'newly available', I would imagine. So, what I'm thinking to answer you're pretty tough question professor is that couldn't we tap new sources of pontential money. For example, new borrowing by the US government could take place to the extent that we can run up a tab about as high as 150% of our GNP. This amount of money, an incredibly significant amount of stimulus, is backed by both the country's government and the country's people's total accumulated savings. And this incredibly significant amount would presumably be enough to bring back heady threats of inflation-- as opposed to your possible suggestion through your question of printing new money. Of course, if this policy of borrowing failed, then presumably it would also be too late for the effects of printing additional money to have any effect.

Now you've got me wondering which scenario makes most sense? Do you borrow from others and leave them with the credit risk or do you print your own money and take it upon yourself? Well, of course, that's an incredibly oversimplified and, admittedly, goofy way to see it, but, you know, it is kind of a neat quesion, no? (Feel free to give me the D or whatever.)

Jon

posted by 12.100.24...

• OT: Economics ... Deflation worries, J, Sat, 14 Dec 2002 11:43:15
  • The supply of 'new' money does not necessarily..., Jon in Chicago, Tue, 17 Dec 2002 13:34:53 <-- Viewing This Message
    • Oh, maybe better explained..., Jon in chicago, Tue, 17 Dec 2002 14:44:15
      • 1) I agree with what you're saying ..., J, Tue, 17 Dec 2002 15:19:52
        • Re: 1) I agree with what you're saying ..., Jon in Chicago, Tue, 17 Dec 2002 16:28:21
    • I don't understand reason for sarcasm, but ..., J, Tue, 17 Dec 2002 14:31:59
  • Some Misunderstandings....., Alex C, Sat, 14 Dec 2002 23:43:42
    • Nixon took dollar off of gold standard years ago., J, Sun, 15 Dec 2002 00:56:28
    • Re:J, you original q was about deflation?, Jon906, Sun, 15 Dec 2002 00:32:02
      • Alright ... there isn't a simple answer, but I did ..., J, Sun, 15 Dec 2002 01:33:20
      • Do you live in Ithaca, NY? Lovely part of country ..., J, Sun, 15 Dec 2002 01:05:48
      • thanks. it makes more sense now. n/m, J, Sun, 15 Dec 2002 00:52:16
  • Deflation worries>> VERY long, K-9, Sat, 14 Dec 2002 18:54:26
    • The word you are all looking for...and more... (LONG), Jeff Malin, Mon, 16 Dec 2002 22:19:16
      • Thank you... and... I hope "fiat" money is better than, K-9, Tue, 17 Dec 2002 14:42:52
      • You get a B-. Your answer was good, but it answered, J, Mon, 16 Dec 2002 23:23:19
        • What to do next, Jeff Malin, Wed, 18 Dec 2002 15:47:28
    • O.K ..., J, Sat, 14 Dec 2002 21:13:56
      • Improving Economics Education, economic barometer, Wed, 2 May 2012 12:54:31
      • Re: O.K ..., K-9, Mon, 16 Dec 2002 13:56:04
  • Re: OT: Economics ... Deflation worries, Ed MA, Sat, 14 Dec 2002 15:32:56
  • Re: OT: Economics ... Deflation worries, bRAD, Sat, 14 Dec 2002 12:25:59
    • Re: Deflation_big problem., Jon906, Sat, 14 Dec 2002 13:27:11
      • So, why not print money?, J, Sat, 14 Dec 2002 14:14:54
        • OT: Economic theory worries.............., zeke, Sat, 14 Dec 2002 19:09:19
          • Deflation is created by too much of a good thing?, J, Sat, 14 Dec 2002 21:37:22
          • Zeke, question for you>, K-9, Sat, 14 Dec 2002 19:36:43
            • Higher Ed' opportunities in MA....., zeke, Sun, 15 Dec 2002 07:38:33
              • Zeke, thanks for the info, K-9, Mon, 16 Dec 2002 14:02:11
        • Re: So, why not print money?, Ian Glenday , Sat, 14 Dec 2002 16:51:20
          • Ian Ian Ian ... you should answer the casting call for, J, Sat, 14 Dec 2002 21:28:09
  • It's certainly hurt the used vehicle market..., b.flippo, Sat, 14 Dec 2002 12:23:49

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