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Cullen, what do YOU think "permanent and procyclical money printing" will cause?

I am not predicting hyperinflation, Cullen.

What I did is that I read your article**, and found that you have repeated, verbatim, the entire Austrian school's argument.

I then looked up the Austrian school, and found that they are predicting hyperinflation of the US dollar in the foreseeable future.

So if you have repeated the Austrian school verbatim, does it follow that you also predict hyperinflation of the US dollar, if "permanent and procyclical**" "money printing**" become the norm?

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I am not predicting hyperinflation, Cullen. I want to know if you predict hyperinflation, since you have repeated, verbatim, the entire Austrian school's argument.

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**Three Things I Think I Think – The More Things Change the More They Stay the Same Cullen Roche - 06/02/2021

Ha. No. I am not predicting hyperinflation.

I said *if* there was sustained huge responses via fiscal channels then you could get high inflation. I didn't say anything about hyperinflation. And that's a HUGE if. I don't expect it.

"Pragmatic Capitalism is the best website on the Internet. Just trust me. Please?" - Cullen Roche

Cullen, so now you have dropped the "MP" bomb, which was once taboo for you.

You have used the phrase "money printing" to describe monetary stimulus from the Treasury.

However, you have not dropped the "H" bomb.

The Austrians predict that money printing begets more money printing, eventually leading to increased inflation. In your words "sustained huge responses via fiscal channels".

However, you say that "sustained huge responses via fiscal channels" is highly unlikely. You say that governments will stop "printing money" well before inflation gets out of control. In this, you diverge sharply from the Austrians.

Could you explain what is the basis for your prediction?

Also, what would be your recommendations for dealing with a hypotherical alternate universe where "sustained huge responses via fiscal channels" is the norm? To clarify, this is a thought experiment only. I have total faith that fiscal authorities around the world will always do the right thing at the right time.

  1. I have ALWAYS described fiscal policy as actual money/bond printing.
  2. I believe the COVID response was more of a one off experience and that we won't sustain high enough fiscal responses to create sustained high inflation.
"Pragmatic Capitalism is the best website on the Internet. Just trust me. Please?" - Cullen Roche