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[-] Mahonia@lemmy.world 1 points 11 months ago

All I'm really saying is: "artificially driving inflation is a bad idea and here's a historical precedent that supports this." I'm not saying it's an identical situation. I know that it's not.

[-] partial_accumen@lemmy.world 1 points 11 months ago

I'd even argue that artificially driving up inflation in a controlled way is a good idea in certain situations. If you're a nation with good domestic production of vital materials (food, fuel, etc), and have a strong export market with a strong currency, your strong currency drives down exports.

Increasing inflation makes your currency worth less, allowing other nations to buy your exports in larger quantity. China has done this for years artificially keeping their currency value low.

Like everything else with monetary policy, each thing is just a tool. Its possible to use it to create as well as destroy.

this post was submitted on 11 Dec 2023
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