[nopinsight]

Enormous liquidity injected into the system along with lower production suggests high inflation in the future after the crisis is over. Do you think that will likely happen?

Note: Above is not a value judgement. The measure is necessary to prevent the system from completely breaking down.

[qubex]

To be honest, it seems that the basic tenants of inflation have been violated since the 2007/8 crisis and the subsequent massive influxes of liquidity (primarily through the various quantitative easing programmes), so I really cannot say with any certainty.

There’s an enormous amount of money already sloshing around in the systems, and it seems to be pooling at the top (hence all the inequality).

On one level, somebody could argue that all the typically ‘renter’ activities (rents, licenses, et cetera) should be suspended during the period of crisis to prevent those who “profit from standing still” to absorb more liquidity and boost their wealth whilst the scurrying masses are bled white, but I don’t think that’s practical.

[nopinsight]

A key reason why this time might be different: A call for helicopter money even among some fiscal conservatives.

Before this, such as in the 2008 crisis, much of the liquidity injection didn’t flow down the bottom part of economic hierarchy. Thus, they haven’t had much increased spending power. So, no inflation of common items. The prices of trophy and other assets preferred by the wealthy did rise up greatly in the past decade.

If the helicopter money plan actually happens in substantial quantity, then inflation of everyday items might occur this time.

[danaris]

...Can you clarify "helicopter money"? That's not a term I've heard before.

[harambae]

It's a term coined by Milton Friedman many years ago

https://en.wikipedia.org/wiki/Helicopter_money

[throwaway3563]

I think it’s a term for any kind of unconditional stimulus; everyone getting automatically it as if it was cash dropped from helicopters.

[Yeroc]

I read an interesting article a while back that posited that we have seen inflation but it's been masked in the regular basket of consumer goods by cheap imports from China. Meanwhile we have seen significant inflation in housting but it's not really recognized as such.

[Dumblydorr]

I second this concern. We haven't had much inflation for years in the US, and I wonder if this crisis will turn it up?