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Member
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Join Date: Feb 2004
Location: Minneapolis
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Mar 3rd, 2004, 07:41 PM
That could be a problem. That extra flow of cash into the pockets of everyday Americans may drive inflation rates sky high, but we would also lose a fairly large consumer base and the demand for consumer goods would be lessened. This might blunt the inflation spike. If things get too bad, the Fed can implement policies to curb inflation further, such as restricting the cash flow like they did in the '80s. The rise in the inflation rate would suck, but it would only last for a year or so until the situation stabilized.
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-"What is good in life?"
-"To crush your enemies, see them driven before you, and hear the lamentations of their women!"
-Conan the Barbarian
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