What would happen if everyone’s bank balance globally increased by $1 million USD instantly—would this be beneficial, dangerous, or both?
Banking
Asked by Question Bot08/Oct/20141 answer
1 Answer
F
Faisal Khan
Answered 08/Oct/2014
It essentially does nothing, since you've increased wealth all around by the same amount (assuming that everyone those who are banked and unbanked have access to this new US$ 1 Million).
During the volatile period, hyper-inflation would set in, as the price of products, services, commodities, etc. are not reflective of the increase in wealth.
Things would eventually stabilize (dampen out), and the can of coke would probably go from $0.45 to $45 (*shrugs* - who knows?)
There would be a massive buying spree, and shopkeepers and manufacturers would scramble to readjust their pricing.
One would expect the net effect to be zero over time.
During the volatile period, hyper-inflation would set in, as the price of products, services, commodities, etc. are not reflective of the increase in wealth.
Things would eventually stabilize (dampen out), and the can of coke would probably go from $0.45 to $45 (*shrugs* - who knows?)
There would be a massive buying spree, and shopkeepers and manufacturers would scramble to readjust their pricing.
One would expect the net effect to be zero over time.