The first round of quarantine stimulus clocked in at about 3 trillion. How big is that? We’ve currently got about 1.5 trillion in circulation. So probably pretty big. We’ve got a lot more in the banks but that’s a bit harder number to pin down. Might be one of those “no one really knows” things.
In any case, the stimulus is about twice what we’ve got as currency in circulation so it’s a decent chunk of change.
This is money we’ve effectively printed ourselves and then lent to ourselves at a very low interest rate. Pretty neat! Wish we could do that as individuals, huh?
How will this affect the value of the dollar longer term? The dollar has been the global currency standard for ages. That said, it’s not magically immune to inflation but said inflation has been relatively slow and steady. The dollar today is worth about 1/10 what is was in 1950.
All this newly “printed” money, what’s that do? We’re not sure, but we’re sure hopeful. We’re betting “not much” although something has to give. Nevertheless, hey this is fun, let’s do another round of “printing money” coming shortly to a government near you!