A deflationary fiat currency, especially in an inflationary paradigm, will lead to lower exports and loss of political control of a welfare state, also destroying the welfare state. There's for sure more negatives for the current system, but the idea is that regimes have no choice but to keep printing.

Reply to this note

Please Login to reply.

Discussion

There are more negatives in the current situation i would say. Stagflation is a difficult situation. Printing more is not the only solution. It might be if you don't want to change the system. Anyway it's a big subject and i can't express myself as i would like.