Perhaps Fed governor Ben S. Bernanke should consider this point when advocating an ultra-easy monetary policy. He recently pronounced before the National Economists’ Club in Washington that:
"The US government has a technology, called a printing press that allows it to produce as many US dollars as it wishes at essentially no cost. By increasing the number of US dollars in circulation, or even by credibly threatening to do so, the US government can also reduce the value of a dollar in terms of goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation."
um grande abraço ajrsoares
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