So a caveat up front - this is most definitely a noobie question, it may be stupid and I’m not even sure this is the best place to post it.
But if you’ve made it this far, then I’m going to carry on.
So in the current climate we’ve seen most of the most wealthy countries pulling together stimulus packages to keep everything going. The US has committed $2tn, Germany has committed to 750bn the UK has offered 66bn.
My question is, where is this money coming from? Normally it would come in the shape of a loan from another country. But I’m assuming that’s not feasible at the moment, given that everyone’s going to need every penny they can get their hands on for their own stimulus offerings.
So are countries finding it within their own borders? If so, how’s that possible given the size of these deals? Are they just printing more cash? In which case, are we likely to see a massive hike in inflation?
Thanks for your time with this. I’m just curious as to understand how this is being dealt with to get a grip on the global impact that these deals are likely to have once things start to return to normal (whenever that might be!)