The EU imposes strict fiscal discipline. That basically prevents the possibility of taking advantage of Keynsian fiscal expansion. In other words, to the extent that greater spending causes growth, it's cancelled out by the matching taxes that reduce growth.
> Compliance with this rule is to be examined on the basis of reference values for the general government deficit (3%) and gross debt (60%) in relation to GDP, whereby a number of qualifications can be applied.
The simple key to understanding what can and cannot be done with printing money is to understand that you can redirect activity inside the country almost at will by printing, a pseudo command economy; but you can't print (a) foreign currency or (b) oil, steel, vaccines, or other constraints of physical production.
Worked example? If you print money and the citizens spend it on imported goods, that depreciates the currency and is usually Bad. Currency depreciation against hard currency (USD) usually shows up as inflation.
Weimar prints money to buy up domestic gold to ship to France for reparations => hyperinflation.
Zimbabwe prints money but is unable to subsidize kerosene in shops at any price because the country doesn't export enough value to import fossil fuels => hyperinflation.
US prints money for domestic stimulus while being oil producer and having labour slack and a generation of anti-wage-rise policy => almost nothing happens except asset inflation.
What in the US economy isn't inflated? The only thing I can think of in my life is utilities.
Everyone knows housing has gone way up. As I go about trying to do work on my house, it's very clear that the price of getting work done when you want it is not what it was in 2019, because I pay those same prices in order to be in a line. I haven't needed anything enough to figure out what the price of prompt work is.
Food prices have gone up. Cars have increased in price significantly.
https://www.ecb.europa.eu/mopo/eaec/fiscal/html/index.en.htm...
> Compliance with this rule is to be examined on the basis of reference values for the general government deficit (3%) and gross debt (60%) in relation to GDP, whereby a number of qualifications can be applied.
The simple key to understanding what can and cannot be done with printing money is to understand that you can redirect activity inside the country almost at will by printing, a pseudo command economy; but you can't print (a) foreign currency or (b) oil, steel, vaccines, or other constraints of physical production.
Worked example? If you print money and the citizens spend it on imported goods, that depreciates the currency and is usually Bad. Currency depreciation against hard currency (USD) usually shows up as inflation.
Weimar prints money to buy up domestic gold to ship to France for reparations => hyperinflation.
Zimbabwe prints money but is unable to subsidize kerosene in shops at any price because the country doesn't export enough value to import fossil fuels => hyperinflation.
US prints money for domestic stimulus while being oil producer and having labour slack and a generation of anti-wage-rise policy => almost nothing happens except asset inflation.