Following the Bank of England’s lead, the IMF is now proposing printing so-called “super currency” and distributing it globally to stem the tide of the global recession. Doing so would of course create inflation, but a bit of inflation is actually necessary as the risks that would come along with deflation are simply too great.
See, when you have economies that are ridiculously deep in the red, and then deflation occurs, the relative burden of those debts increases in comparison to the rest of their wealth. In effect, it would make every debt you ad I have, along with the government, even greater without any sort of benefit.
So as ridiculous as it may seem, this macho money may not be as bad of an idea as it sounds. Expect an update this weekend (maybe…it is spring break after all…) as to whether or not the G20 takes action on this proposal.