This question could not being answered with this model, because it is not complete, it is only part of world.
Complete model Smith model, with mostly free market. Exists range of meanings, how large could be government in economy, I think it should be less then 10%, other expert said numbers 10-30%.
So, if govt share is less than 10%, free market could just repair itself; also in this case, free market have plenty of resources, so will survive if govt will raise taxes (print is essentially special type of tax, because anyway, govt will got money much earlier than market).
If govt share is more than 30%, things are much worse, as any taxes raise will lead to markets fall.
Complete model Smith model, with mostly free market. Exists range of meanings, how large could be government in economy, I think it should be less then 10%, other expert said numbers 10-30%.
So, if govt share is less than 10%, free market could just repair itself; also in this case, free market have plenty of resources, so will survive if govt will raise taxes (print is essentially special type of tax, because anyway, govt will got money much earlier than market).
If govt share is more than 30%, things are much worse, as any taxes raise will lead to markets fall.