Yes that is true. But that all starts with the lack of confidence in the government and the presumption (usually rightly so) that they will screw things up even more. In a smaller economy like the ones you mentioned, that loss of confidence ends up in the economy in an overriding way. Hence, the solution by the bankers is to overprint when there is massively declining productivity.

It is a situation we saw repeated on a lot of occasions.

Posted Using LeoFinance ^Beta