NeilW wrote:johnhemming wrote:If the majority of people think that printing masses of money will devalue it then it will.
It can't do - because the 'printing masses of money' is a reaction to lots of people saving in the denomination, not spending and not borrowing
I'm confused, I'm interested in Economics/Finance but neither an expert, nor one sold on any particular viewpoint.
However, in my naive view, and in recent experience in the case of furloughing the work force at my wife's place last year, wasn't the printing of money last year a reaction to 100s of 1000s not having any money?
My wife's workmates seem to mostly be on tax credits and frequently borrowing from each other to fill their cars up, so they most certainly cannot be classed as people saving in the denomination. So whilst I understand why QE will encourage spending, but definitely not as a reaction to people saving.
Matt