20 votes

Why do we need to "get the economy moving again"?

Both Alice and Kate have bills to pay, regardless of whether they are earning money or not. Restaurants and salons have to pay rent and maintenance on their properties whether they are in business or ...
Darrel Hoffman's user avatar
14 votes
Accepted

Will printing more money during COVID cause hyperinflation?

Will printing more money during COVID cause hyperinflation? Likely not for several reasons. First, the article from economicshelp.org you mention is oversimplifying the economics, which is ...
1muflon1's user avatar
  • 56.4k
13 votes

Why do we need to "get the economy moving again"?

Trade is good because it creates efficiency. Alice has invested in her kitchen and knows the supply chain of ingredients, and due to the efficiency of her business, she can sell a meal for $50. If ...
Nuclear Hoagie's user avatar
11 votes

Statistical models which represent the impact of strict measures vs no strict measures (and less economic impact), enforced due to Covid-19

"The Benefits and Costs of Using Social Distancing to Flatten the Curve for COVID-19", Thunstrom et al. We examine the net benefits of social distancing to slow the spread of COVID-19 in the United ...
the gods from engineering's user avatar
8 votes
Accepted

The Economics of Coronavirus

With the right keywords (and author searches) from earlier papers, I actually found some academic output already; this might not be peer-reviewed yet, i.e. preprints: McKibbin and Fernando (2 March ...
the gods from engineering's user avatar
8 votes

Why do we need to "get the economy moving again"?

Let's consider another example. I'm an automotive manufacturing service engineer; I build and repair machines that are used to build and repair cars. I use the money I earn to buy a variety of things, ...
Tanner Swett's user avatar
7 votes

Statistical models which represent the impact of strict measures vs no strict measures (and less economic impact), enforced due to Covid-19

The Institute for Fiscal Studies has published research by Banks et al. entitled Recessions and health: the long-term health consequences of responses to the coronavirus, which investigates the ways ...
CDJB's user avatar
  • 171
7 votes

Why do we need to "get the economy moving again"?

Most people aren't Alice and Kate. GDP is a measure of the total goods and services produced within an economy. The point is measuring total production, not measuring how much money is changing hands....
reirab's user avatar
  • 430
6 votes

Economics Online Seminars

I have two here to add to your list. Brookings Insitute https://www.brookings.edu/events/ St. Louis Fed Economic lowdown (FREE) https://www.econlowdown.org/ There is also the National ...
Mike J's user avatar
  • 1,471
5 votes

Why do we need to "get the economy moving again"?

In addition to the +1 answer of @KennyLJ which corrects the misconception beteen money and value, let me address the question in your last paragraph directly. Even if we could assume for a sake of the ...
1muflon1's user avatar
  • 56.4k
5 votes

Indifference Curve Analysis

Indifference curves represent preferences. Preferences are usually assumed to be stable, i.e. they do not change. So no, indifference curves don't shift.
VARulle's user avatar
  • 6,805
4 votes

Economics Online Seminars

There is a nice overview table with 33 econ webinar series (by April 10th) available here: https://sites.google.com/view/econ-webinars/ Difficult for me to find out who is behind this great ...
Bertrand's user avatar
  • 3,351
4 votes

Economics Online Seminars

In a few days, the Royal Economic Society in the UK is hosting Economic approaches for analysing the short, medium term and long run impact of the COVID-19 crisis featuring Daron Acemoglu and ...
Herr K.'s user avatar
  • 15.4k
4 votes
Accepted

What would be the economic effect of widespread instances of individuals paying off consumer debt?

This left me wondering what happens to the wider economy when people decide en masse rather than spending their disposable income on consumer goods/services, to instead pay down their debt and save/...
1muflon1's user avatar
  • 56.4k
4 votes
Accepted

Why West Virginia is one of the least-vaccinated states in the country due to cash giveaway announcement?

I am not sure why West Virginia is the least vaccinated state* in the US but If vaccination is progressing poorly in your state the government is more likely to try and encourage it by all sorts of ...
Giskard's user avatar
  • 29.5k
4 votes

Did Biden's stimulus packages cause inflation in the US?

First of all there is no evidence inflation would be currently spiralling in the U.S. right now. Spiraling inflation occurs where price inflation feeds wage inflation and wage inflation feeds price ...
1muflon1's user avatar
  • 56.4k
3 votes
Accepted

UK Government Coronavirus Job Retention Scheme Funding

It is not correct to say that the Coronavirus Job Retention Scheme is essentially providing loans. A little background. The UK government currently has two major schemes to support businesses and ...
Adam Bailey's user avatar
  • 8,369
3 votes
Accepted

Won’t paying wages to temporarily unemployed due to Coronavirus result in inflation?

Not by itself. The inflation generally depends on the following monetary relation: $$ MV =PY$$ Where M is money supply, V velocity of money (how much one buck is used in economy), P is the price ...
1muflon1's user avatar
  • 56.4k
3 votes
Accepted

Why not create money to assist the post-COVID-19 economy?

First, the two examples you list here are not equivalent. In the first example some portion of money circulating in economy is destroyed by the computer virus so reverting it would just keep amount of ...
1muflon1's user avatar
  • 56.4k
3 votes
Accepted

Asking for paper or data source mentioning the social restriction due to COVID-19 globally

I think the data you're interested in can be found in the source Our World in Data uses for their index calculations (this is the website of the researchers dedicated to the dataset, and this is the ...
AndrewC's user avatar
  • 1,370
2 votes

How likely is a total economic collapse due to the potential coronavirus impact?

As a disclaimer, this is not an answer, rather a long-form explanation of the difficulties of answering. The first leg is uncertainty about the danger of the epidemic. Economists are not medical ...
Brian Romanchuk's user avatar
2 votes

Should unemployment caused by the government closing non-essential businesses during quarantine be counted as structrural unemployment?

There are lots of different people unemployed, and the answer will be different depending on the person. In your prostitute example, if you left your medical assistant job because prostitution paid ...
Acccumulation's user avatar
2 votes

Why does global suspension of economic activity result in catastrophic loss/debt?

It creates losses. First, many businesses don’t own their own building/land/equipment. It’s very common to lease these things. Moreover, many business take out insurance that again has to be paid on ...
1muflon1's user avatar
  • 56.4k
2 votes
Accepted

The government is issuing massive debt for coronavirus relief - why aren't interest rates rising?

One standard way of determining the fair value of a bond yield (for a country that controls the currency it borrows in) is to say that it is the sum of two factors. The expected (Geometric) average ...
Brian Romanchuk's user avatar
2 votes
Accepted

Why doesn't the Federal government just let the stock market crash?

The government(s) [probably] assume that this is lockdown is a temporary situation so having companies fail during the lockdown would mean that when the lockdown is lifted there would be no jobs for ...
the gods from engineering's user avatar
2 votes

COVID-19 Policy Analysis

I am not sure about a way to look at it from an economics perspective since I am no economist. However, I am someone interested in this question and looking into doing academic research into this. ...
Hemn Farhad's user avatar
2 votes

Why do we need to "get the economy moving again"?

Capitalism is predicated on an expanding economy. When Mr. Moneybags goes to market, he exchanges his money ($M$) for the commodity of labor ($C$). He employs this labor to create further commodities, ...
Charles Hudgins's user avatar
2 votes

Why do we need to "get the economy moving again"?

What your example doesn't include is the relative ability of each person to provide a needed product or service. If we expand your example this becomes clearer: Kate spends 50 USD on a meal which ...
JBentley's user avatar
  • 121

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