The coronovirus shock indeed has come as something truly unexpected, as no thoughtful analysis or a mad guess could've forseen such consequence of events. However, as for now, we are situated right in the point on the timeline, where prediction is not a guessing game anymore.
As fast as the virus broke into our life, the authorities claimed that it is largely under control: both from medical and from economic point of view. Every negative news started to be percepted as just another reason for new exceptional stimulus. As the market sentiment suggests, the unprecedental and, so to say, mind-blowing Fed and US Government injections are widely presumed to be the end of the story. Nevertheless, there are investors that were waiting for the "blood in the water", but didn't manage to actually taste one. Will they have a chance to do so?

THE INFLATIONARY SCENARIO

Well, with all of responsibility that an analyst (ideally) must possess, I should say that I don't know. But while there are scenarios that make me agree with the existing optimism at the market, there is a certain one that does seem to be an actual crisis. And it is going to be the topic of this article.
The "helicopter money" injections that we see indeed seem to be a solution of every single concern that investors have. However, does US economy really possess a flawless weapon, sort of Thor's Stormbreaker that only US is worthy to hold? Unfortunately, not a single item in the economy comes at the zero price, as the functioning of such a complex system is undoubtedly a zero-sum game. Therefore, while the US citizens gain from such injections, someone should suffer the identical losses? It turns out that it will be the same US citizens, but in the future. The returning all over again story about incredible growth at the expense of the future failure seems to be at the door again.
Every undergraduate student with Economics as a major will definitely tell you that money printing spending is an inflationary scenario due to increase in the money supply that pushes interest rates lower, thus, causing the positive aggregate demand shock, ending in the acceleration of the inflation. However, the coronovirus situation has caused a quite strong negative demand shock, thus, causing the temporary (very temporary) slow down in the inflation.…

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