Does the government need to spend more money during inflation and recession?

[Kross]

I have read in some quarters that the government should spend more money during periods of recession and inflation.

How true is that assertion? What is the rationale behind the government having to spend more money when the country is under a recession?

 

[King Belieal]

A government doesn't need to spend more during inflation. It can do so during the recession but not for inflation.

 

[magnus2022]

I have read in some quarters that the government should spend more money during periods of recession and inflation.

How true is that assertion? What is the rationale behind the government having to spend more money when the country is under a recession?

It doesn't make any economic sense for government to spend more money during inflation. Pushing more money into the economy will definitely increase the inflation.

 

[Augusta]

No I don't think such a decision would bring any good impact . The right decision should be taken

 

[Stardom22]

Of course yes. The government spends more money on response to the inflation like the introduction of the subsidies.

 

[Xtynehappy]

The response to the rise in inflation by some governments results into the government spending money on subsidiaries for reduction of the prices.