what are the disadvantages of increasing quantity of money in an economy facing recession

Inflation: One of the major disadvantages of increasing the quantity of money in an economy is the risk of inflation. When there is too much money circulating in the economy, the value of money can decrease, leading to a rise in prices. This can erode the purchasing power of consumers and can be particularly harmful to those on fixed incomes.

Currency Devaluation: If the money supply increases too rapidly, it can lead to a devaluation of the currency on the international market. This can make imports more expensive and can negatively impact the balance of trade.

Income Inequality: Increasing the money supply can also lead to income inequality. This is because the benefits of an increased money supply often go to the wealthy, who have assets that can appreciate in value, while the poor and middle class may face higher prices without seeing an increase in wages.

Uncertainty and Instability: Rapid changes in the money supply can create uncertainty and instability in the economy. This can discourage investment and economic growth in the long term.

Short-term Fix: Increasing the money supply is often a short-term fix to economic problems. It can stimulate demand and boost economic activity in the short term, but it does not address underlying structural issues in the economy. In the long term, these issues can continue to cause economic problems, even with an increased money supply.