Manhattan Project to prevent Hyper-Inflation

New Economic Perspectives has the article Manhattan Project to prevent Hyper-Inflation.

This is not, however, what is happening now with the fight against the Coronavirus—and the desperate effort by governments to put money in the pockets of people who can’t work and businesses who can’t open their doors to customers. So, while we’re discovering first hand and in real-time that, yes, sovereign currency issuing governments can, in fact, just create money so they can spend it—without having to collect it back in taxes, either now or in the future—we are also laying the groundwork for causing the hyperinflations described above: “A significant and general collapse” of our business and employment framework is happening before our eyes, while our government feverishly dishes out cash.

The diagnosis of the problem describes what I worry about. The solutions suggested in the article are misguided. When you give people money to spend, the productive capacity of the country must create the goods and services that people want to buy.

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