Inflationary Boom Looms as Governments Monetize Massive Budget Deficits
The COVID-19 pandemic has led to massive budget deficits in many countries, which are being monetized through increased money creation. This could lead to high inflation rates in the future due to the rapid growth of the money supply. Central banks are not currently addressing the inflation risks associated with this monetary financing approach. To prevent high inflation, the rate of money growth needs to be reduced back to more sustainable levels.