Market analysts believe stocks will go up due to money being printed

While the coronavirus pandemic was making rounds and we were all worried about public health and safety, economists were worried about the condition of the economies all over the world as well. This is the reason why we saw stimulus and relief packages being given as well as efforts being made to revive the economy. However, the problem is that the pandemic is still around which means the restarting of the economy is facing issues. Talking about the stimulus packages as well as other packages, it is interesting to know where that money comes from.

Well, you might have already guessed it from the title that this money is being freshly printed and will be sent to people in the due course. However, the problem is that countries cannot become rich by printing more money because that would lead to inflation. Otherwise, we would have seen that every country is rich and there is no poverty all over the world. Talking about the fresh money being printed in the bill houses, stock market analysts now say that we will see a high coming to the market because of the new money being injected into the market by the government.

Analysts have given out some of the factors that will help in bringing the markets to a high such as “Inflation being low because of the way the government calculates inflation as well as artificially low interest rates and globalization” as well as no issue of “Borrowing” because of a surplus of capital in the market due to money being printed. Analysts also say that it is possible the market could get hurt by currency depreciation meaning that value of the dollar going down but right now, “Currency depreciation has not been an issue because most governments in the world are engaging in similar policies”.