We are largely talking past one another. Of course, excessive printing of money, or even the perception of such, can via a reflexive process, fuel inflation. Productivity fundamentally underpins fiat currencies. So ideally, productivity relative to money in circulation should be the basis for deciding whether printing is excessive or not. What I wrote in my post explains the process by which new, outside money is inserted into an economy. This necessarily involves deficit spending, thus we can recognize that deficits are essential to any economy that is growing if deflation is to be avoided. The only question then is how much deficit is needed at any particular time. This is a subject of Abba Lerner's "Rules of Functional Finance" (see https://en.wikipedia.org/wiki/Functional_finance). Your concern should be, whether you realize it or not, with too much money printing; not with money printing per se, which is absolutely essential to a growing modern economy. It's plain that you understand the fundamental issue when you write, Unless more output is generated through the money printing process or the goods are somehow obtainable at the same prices regardless of the money supply or currency value then you will have inflation. Though this is not incorrect, it leads to an oversimplified view of inflation that is only a slight improvement on Friedman's dictum that “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output,” which is faulty in the same way. (see https://www.frbsf.org/our-district/...8/may/future-fortunes-r-star-are-they-rising/ Your thinking, it seems to me, is very much along the lines of amateur Austrian School economists who hold to their views despite being buried by evidence that their views must somehow be very wrong. We are surrounded by rampant money printing and yet the problem so far has been too little inflation rather than to much. Now we are seeing the first signs of a significant pick up in inflation, and we understand well the cause. You will see in the coming months that central banks respond accordingly and there will be no "hyperinflation", as you predict. (I am taking a chance here because I don't have your definition of "hyperinflation.") The real question is at what rate should money be printed to keep it in reasonable balance with growth in productivity? An important auxiliary question is "to what degree is deficit spending and productivity reflexive?
It is more my opinion that the actions the central bank will implement will cause higher interest rates and in turn business defaults and house repossessions.
The Central Banks have many tools. Unfortunately they are all of a monetary nature. What's coming in the U.S. is a tremendous boom due to huge demand side stimulus, unless the Republicans wreck our fragile democracy in the meantime. I doubt they can. The country is going through a political crisis at the moment. There is only one major political party still functioning like a political party. The other party has been taken over by cult like worship of their gangster leader. There have become totally corrupt, and although many of their operatives have just got out of jail or are on their way to jail, they still have that smaller part of the poorly educated electorate believing their strange conspiracy theories.
Where is this demand side stimulus coming from to create a boom. I thought any money put into the economy was to cover the lost income the Coronavirus caused. Are you saying that these funds were stimulus rather than emergency spending or compensation for the lost opportunity to work?
Trillions on the way for infrastructure, education , childcare , nutrition, etc. Unless Republicans derail it. The covid relief was also demand side in the way it was applied. Corporate earnings going through the roof. Happy days are here again. Of course a huge bubble is being blown in the equities markets. That's not intentional though; it is human nature at work...
Apart from the Vocid relief payments, which compensated for the loss of income the Coronavirus caused can you show me any additional stimulus or planned stimulus programme?
they way more than compensated! AND these payments are forcing a 15$/hr minimum wage to be adopted! Something the Democrats could not force through with legislation so they cleverly did it through the back door! Read Bloomberg, it will get you up to date on U.S. politics and what's happening with the infrastructure package (now packages, they split it up into a reconciliation package and put the stuff they can't pass through reconciliation into a separate package they are working on passing with Democrat votes alone by doing a carve-out around the filibuster in the Senate.)
Here is the link. But it is not that simple. What you want is knowledge that is spread out over time in little bits and pieces. When you wake up every day go to https://www.Bloomberg.com and scan the lead page for articles about legislative initiatives in Washington. In 6 months you'll be up to date. When the Covid relief packages were put through, the weekly payments to those out of work were based on a 40 hr week at 15$/hr. This amounted to a raise for a good portion of the nations low-wage workforce. This additional money was 100% on the demand side. And most of it was quickly spent into the economy. "inflation-adjusted average hourly wages grew 7.2% between 2019 and 2020. Similarly, real median hourly wages—the wage growth from the middle of the wage distribution in 2019 to the middle of the wage distribution in 2020—grew 6.9% between 2019 and 2020. (Workers at the median are often referred to as “typical workers.”) These average and median growth rates between 2019 and 2020 far exceed any single-year wage growth over the prior 45 years of data available and exceed the second fastest single-year wage growth by 80% to 90%, depending on the measure." https://www.epi.org/publication/state-of-working-america-wages-in-2020/
You should stop conversing with Morganist. You are just feeding the monkey. Morganist's ideas are all about how to save nations through pension savings in the UK, and that can be magically applied to every country in the world. Because...Pensions! He wrote letters to Parliaments all around the world (except the USA), and they are applying his economic principles as we speak!