President of the Australian Reserve Bank, Governor Philip Lowe has stated that money printing is not the best way to stimulate an economy in recession.
The statement was recorded in an address given by the governor on 21st July in Sydney. He stated that instead of printing money to give out as a stimulus package, the government could access funds through public debts since the rates are lower compared to other countries. He stated that the clamor for money printing is a wrong approach in his speech, as no money is ever gotten free.
Governor Lowe made this recommendation based on the government's proposed extension of emergency social security measures that will cost an additional $US14.2bn.
The governor may not be the only one who does not welcome the printing of money to give as stimulus packages, like the United States and other nations are currently doing. According to a tweet on the 25th march from Maxime Bernier, a Canadian parliamentarian, printing more money debases a currency, because more money chasing few goods eventually reduces the purchasing power.
The case for cryptocurrencies.
One of the fundamental issues raised by cryptocurrency proponents is the management of the money supply. In the fiat system, the central/reserve bank can print new money, as many times as it deems fit. Compared to bitcoins and other cryptocurrencies with limited supply, fiat money will always lose value over time. As it is now, while cryptocurrencies may not yet be readily accepted as a means of payment, its function as a store of value is becoming more evident.
Source: Cointelegraph
