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asked ago in General Economics Questions by (1.4k points)
edited ago by
I have developed a fast model that tries to depict the consecuences of having a strong public labor force without a strong private industry. The functionaries' wages are paid from printed money and the demand created is not covered by the whole country's supply expelling demand into imports. When the time go on this creates a excess of national currency in the currency exchange offices devaluating the national currency. Is this the correct way to explain a case like the Argentinian (without taking in consideration the huge debt paid by printed money) where the public labor force is greater than the other countries' average paid by taxes?  

All of this taking into account that the supply can't grow so fast to cover the national demand.

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