Crazy question about money

[john-e89]

They seemed able to print enough money to prop up the banks so can’t see why they can’t do the same again to get the country back on its feet.
Rob

My thinking Rob, just pay off the debt this virus is incurring only and away we go as before. I can’t see why just paying that off would de-value the pound as long as it’s not taken any further than the virus debt only. :scratchhead:

They are printing it. They said that right upfront. They describe it as fiscal easing. :wink:

Each economy will require different amounts. Therefore the exchange rates between them will alter as a result. Inflation is a usual result of such measures if run for too long, though this situation will undoubtedly require some new modeling to predict the outcome.

Missed that Buzy.... :roll:

Obviously it’s devaluing the pound as the money is out there in circulation but to what extent..? That and not much other choice is there.

 

[exdos]

Obviously it’s devaluing the pound as the money is out there in circulation but to what extent..? That and not much other choice is there.

John, that's not actually correct. Have a look at the last 6 month history of the GBP versus the USD here: https://www.exchangerates.org.uk/GBP-USD-exchange-rate-history.html

I was over in the US last October (before the existence of Covid-19 was known) and the GBP is presently around the same mark against the USD as it was then. As the graph shows, the GBP dipped sharply as we went into lockdown, but has risen back to that October 2019 level. If that's been achieved by any form of printing money or not, it hasn't devalued the pound. The pound has performed almost identically against the Euro has it has done to the USD, see: https://www.exchangerates.org.uk/GBP-EUR-exchange-rate-history.html

 

[Roberltd2]

If every country in the world is in debt, who do they all owe it to?

It's a bit like one of those time travelling conumdrums.