If I share an article from The Onion, it is usually obviously a joke. But this one go me thinking:

WASHINGTON—In a unique and limited-time offer for residents of the United States only, Janet Yellen announced Tuesday that Americans could use the promo code “THANKS” for 10% off all U.S. goods and services. “This Thanksgiving, the Treasury Department is saying ‘thanks’ with an exclusive promotion just for taxpayers, whether you need a pack of gum or a new car,” said the Treasury Secretary, who urged Americans to redeem the incredible offer today, stating that she herself was a “huge fan” of U.S. goods and services, which she loved and used every day. “To activate the promo code, simply mention it to your Whataburger cashier, or visit treasury.gov/thanks. Remember, this amazing offer won’t last, so now’s the time to book that babysitter or finally get that Instant Pot! Again, that’s T-H-A-N-K-S, thanks.” At press time, Yellen added that the offer was for first-time U.S. consumers only.

The Onion

So we’ve had this massive economic stimulus – both monetary (low interest rates and “quantitative easing”, which they tell us is printing money but without the paper or coins, just willing it into existence in our computers collective imaginations) and fiscal (the government borrowing money from itself, which is another way of willing it into existence, and giving it back to us as “tax credits”, sometimes by writing numbers in our bank statements each month). A problem with just passing out money is that the poor spend it, but the middle class only spend some of it and the rich just squirrel it away. So you end up with a ton of money sitting around, and then when demand picks up people suddenly start spending it, and the real economy cannot ramp up supply instantly, so prices have to go up to put the brakes on demand and bring it down to what is actually supplied. Gradually, we hope supply will catch up and the rate of price increases will stabilize to something normal. The danger is that people can keep demanding higher wages, companies can raise prices to cover the higher wages, and the system can spiral from there. There are time lags built into the system so while prices can change quickly, the underlying real economy can’t.

So at least part of the root of the problem is people saving rather than spending stimulus money, then spending it unexpectedly. So what if you did have a kind of money that was more like a coupon with an expiration date, and could only be spent in a limited time frame, but not saved long term. Businesses would have to be willing to accept it. This might be accomplished easily if they knew they could use it to pay their taxes. The federal government would have to agree to accept the temporary money as tax payments, and get state and local governments to fall in line. People will speculate on anything given the chance, so the government might have to outlaw complex trading arrangements or derivatives based on the temporary currency.