⚠️Automatic translation pending review by an economist.
Julien Pinter, an economist at BSI Economics, wrote an article for Les Echos on April 22.
He reminds us that money creation is not a miracle cure, a solution to all our problems, and that the illusion of free helicopter money is mistaken (regardless of how it is paid out, directly to citizens or to the state).
Money creation, like debt, does have a cost. Furthermore, whether spending is financed by the former or the latter, the « real » constraint (on the government and the central bank) must be taken into account, otherwise we would be heading straight for excessive inflation or even default.
Read the full article by clicking here.
