Economics - 2020: What Happens When Everything Shuts Down Except the 'Money Printing Presses'

20 Pages Posted: 28 Apr 2020

See all articles by Austin Murphy

Austin Murphy

Oakland University - School of Business Administration

Date Written: April 26, 2020

Abstract

This short paper indicates how the massive fiscal deficits financed by creation of fiat money by central banks worldwide (undertaken in response to the 2020 coronavirus pandemic) may lead to an inflationary depression. In particular, the supply disruptions caused by the pandemic inhibit the production of real goods and services necessary to absorb the extensive money printing to fund the large amounts of government spending could lead to an increase in the prices of real goods and services that is comparable to that occurring during the hyperinflation in Germany in 1923 except on a broad international scale.

Keywords: crisis, hyperinflation, depression, coronavirus

JEL Classification: G01

Suggested Citation

Murphy, J. Austin, Economics - 2020: What Happens When Everything Shuts Down Except the 'Money Printing Presses' (April 26, 2020). Available at SSRN: https://ssrn.com/abstract=3585905 or http://dx.doi.org/10.2139/ssrn.3585905

J. Austin Murphy (Contact Author)

Oakland University - School of Business Administration ( email )

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