Akvod on 08 May 2010
| SamuelRSmith said: Deficit spending during recessions has great consequences on inflation rates, and whilst it may provide short term relief, it all has to be paid back which inhibits the long run performance of an economy. |
If there is a aggregate demand shock, there should be disinflation, so inflation shouldn't be a problem. Theoretically, all we're doing is putting back inflation where it was pre-inflation rates.
