> You print money and spend it on buggy whips, they continue to make a positive return
Sure, but no one is talking about combining general monetary expansion with targeted fiscal stimulus on the industries experiencing a drop in market demand.
(There might be good reason to do that to avoid capacity loss if you had a good reason to believe that it was a transitory loss in an industry where even with the buffering provided by inflation, production cuts would, absent fiscal intervention, be so severe as to result in abandonment/neglect/destruction of capital goods that would adversely effect an expected recovery, but that’s a far different issue than monetary inflation alone.)
Sure, but no one is talking about combining general monetary expansion with targeted fiscal stimulus on the industries experiencing a drop in market demand.
(There might be good reason to do that to avoid capacity loss if you had a good reason to believe that it was a transitory loss in an industry where even with the buffering provided by inflation, production cuts would, absent fiscal intervention, be so severe as to result in abandonment/neglect/destruction of capital goods that would adversely effect an expected recovery, but that’s a far different issue than monetary inflation alone.)