Consecutive printing of currency in the long term means the financial system of a country is in a critical state, according to Jean-Michel Paul, CEO of Acheron Capital, who is speaking at the ongoing BusinessDay CEO Forum.
“Printing currency is addictive, it’s like drugs, especially to politicians. Every government will tell you there is nothing like free money. It allows you to finance fancy projects with no tax,” Paul, the author of The Economics of Discontent: From Failing Elites to The Rise of Populism.
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In the long term “the easy money for all means the financial system is really breaking down,” Paul said.
Giving a presentation at the virtual event titled “Regaining Strategic Flexibility in the Age of Uncertainty,” Paul said, while the benefit of printing currency is only good for the short term, in the long term it means “we all get poorer.”
Paul is a London-based hedge fund, and faculty member at the Solvay Brussels School of Economics and Management.
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