Earlier quoted context omitted.
Enormous liquidity injected into the system along with lower production suggests high inflation in the future after the crisis is over. Do you think that will likely happen? Note: Above is not a value judgement. The measure is necessary to prevent the system from completely breaking down.
To be honest, it seems that the basic tenants of inflation have been violated since the 2007/8 crisis and the subsequent massive influxes of liquidity (primarily through the various quantitative easing programmes), so I really cannot say with any certainty. There’s an enormous amount of money already sloshing around in the systems, and it seems to be pooling at the top (hence all the inequality). On one level, somebo…
Before this, such as in the 2008 crisis, much of the liquidity injection didn’t flow down the bottom part of economic hierarchy. Thus, they haven’t had much increased spending power. So, no inflation of common items. The prices of trophy and other assets preferred by the wealthy did rise up greatly in the past decade.
If the helicopter money plan actually happens in substantial quantity, then inflation of everyday items might occur this time.