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Topic: why the state does not print a lot of money? - page 13. (Read 2718 times)

sr. member
Activity: 2030
Merit: 323
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
I think if the government of one nation print a lot of money it will affect their economics because the more they print the the value of money would decrease.
That is pretty nice concept. The printing of money causes inflation which in other words declines the purchasing power of the currency. Zimbabwean government issued a note of $100billion as a result of which the purchasing power declined further. The inflation had risen to 13000% which is called hyperinflation. This is because you only print money that is not backed by gold or bullion like in the UK. So it is like a burden over the economy.
full member
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Omicron is another FUD
all based on rules and print money based on the rules, and if currency printing is not set, then what happens is the imbalance of economy and exchange rate, for more complete explanation please search on Google search engine  Grin ...
sr. member
Activity: 420
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Your idea is very naive, if the country raises money, can cause currency depreciation, price rises, cause inflation!

Inflation can lead to economic instability in the country!
newbie
Activity: 92
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because printing too much money will affect the value of the currency and will be on the social life of the people in the country
member
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They call that inflation rise or down but this is the serious question I had before knowing economics. There is a restriction on printing paper currency for each country it seems as per the international agreement and more printing makes the inflation rise and the economy will go down as per my knowledge.
member
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Merit: 10
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
As far as I know paper money must have some background behind it,  such as gold some investment capital some world debt,and what not. Maybe they are just don't have enough background.
hero member
Activity: 1036
Merit: 500
why the state does not always make money, because if a country is printing too much money, the value of that currency will go down so it will cause more problems, that's why they prefer to owe rather than make money

Exactly right!

This calls for the inflation of the fiat currency.

When they will print more money then it will increase the supply of the fiat thus though the demand grows you will still have lot of supply. This way the circulation will keep on going in negative way. Thus it will do the demonetization of the currency.

Thats why they dont print more.


Agree. It will only get worst. Printing more money doesn't solve anything. It will just cause chaos. And yes it is true, printing more money will cause hyperinflation. It will make money lesser in value. More cash means people do have many to spend. If people have plenty of money to pay and supply gets lesser, this will decrease the purchasing power of money.
One thing is the most common among all the countries which is curiousness about their economies. They are working day and night to improve their economies so it does not mean that they make a lot of paper notes. Manufacturing of paper currency needs a lot of country’s budget so it is not only limited to currency but country has to take care of everything that is the most probable reason for it.
full member
Activity: 476
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why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
The reason why the government is not printing a lot of money due to the supply and demand. The value of the money that they are printing will lose its value if they will print a lot of it. They know thst the inflation will happen if they print a lot of money.
sr. member
Activity: 1914
Merit: 328
a country does not dare to print a lot of money because I see with a lot of money printed then it will make price inflation which means definitely nominal money in the country will be very cheap.
We aren’t that much technical about financial equilibrium but as far as little knowledge I have, this is just because of the gold and silver saved in country’s banks. These countries can’t just print out money. Because the printing money must be resenting with the amount of gold stored. If that exceeds the limit, then inflation starts to take over and things are getting out of bound.
sr. member
Activity: 469
Merit: 250
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
I think the government consists really wise people and if they would be able to present a ton of money, I think they would already done that for long time ago, so it means that something is not so easy.
The reason is that printing more money doesn’t increase economic output in any way it merely causes inflation.True you have more money, but if everything is more expensive, you are not any better off.
sr. member
Activity: 2030
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Because they know that it will cause a negative to the economy of that Country. If that's the solution to the problem, then it should have been done a long time ago. but it's not the way to pay any debt of a country. The Government still need to keep the balance in every Country, even the printing of their local money.
In order to make products you need reactants as well so state also needs budget and money for the manufacturing of paper currency and to run factories etc. they also use huge money on its printing which is reason consuming money. Another reason is its value if they print a lot of paper notes then it will be excess and will not benefit therefore in this case it make competition for money as well.
jr. member
Activity: 364
Merit: 1
Why does not she do this? does, but not on a large scale, that there was no inflation. This same policy is also supported in cryptology. Most of the cripples are limited in numbers to keep the course of this crippled stock up.
member
Activity: 159
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why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
I think the government consists really wise people and if they would be able to present a ton of money, I think they would already done that for long time ago, so it means that something is not so easy.
hero member
Activity: 910
Merit: 512
The printing will make things worse if the country have not a gold reserve enough for it. As the money will lose value, if a thing has a lot of supply than the value in many cases decreases.
Quite right because the printing of money has this disadvantage that it causes inflation that is a consistent rise in the general price level. By this I mean to say that if you increase the money supply, your prices of the goods and services will also rise. However the state has an alternate way of rising the GDP by various methods and do not normally go for printing money.
full member
Activity: 406
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Because printing money is already set by the government so when there are parties who dare to break it they will certainly undergo the process of punishment and disappointment can not be avoided after everything has really happened.
jr. member
Activity: 378
Merit: 1
If the state stops printing money, then money will depreciate and become just paperwork
member
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https://vulcanforged.com/
It seems natural to think that our government should just print more money, so we do not have money problems. Well, that does not really solve the problem at all. It causes more problem. Printing more money will merely cause massive inflation. The demand for goods will tend to go up as we have more money in our pocket but the supply will run out. This will force the sellers to make the price increased. As the price increase, the value of money is not the same as before.
full member
Activity: 434
Merit: 110
why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?

3rd parties actually do print a lot of money for the government daily in unbelievable huge amounts, but this doesn't help anymore, as powerful countries are living in billions debt. Money is slowly being outdated, and will be replaced by something more modern and with real value. Money is just an agreement between people, it has not much value behind it, and loosing it every year due to inflation.
Most of the people will never believe in fact that money will be replaced by a better financial instrument, but this surely will happen in the near future.
jr. member
Activity: 165
Merit: 1
why the state does not always make money, because if a country is printing too much money, the value of that currency will go down so it will cause more problems, that's why they prefer to owe rather than make money
That`s right the more printed money the value of each of it are very less amount, besides they can actually do that if they want to, but they are thinking about the population of our economy right now and also value of that currency which we really need.
hero member
Activity: 2268
Merit: 789
I believe that you lack the necessary foundation of basic economics which was taught in high-school since printing money will cause inflationary effects in a country, which may eventually proceed to hyperinflation. Although inflation may be shown in a negative aspect, printing money is also a method of the central bank to control inflation. If there is a high supply of products in the market, prices would go down in order for the demand to increase. Central banks may utilize this method in order to increase money supply but this must also be accompanied by increase level of production in order to cope with the unemployment rate during recession.

If banks print more money without any accompaniment or whatsoever, this will devalue the currency of a country resulting to hyperinflation- which in the case of Zimbabwe, the denomination of their currency is absurdly and abnormally high.

The amount that your country will depend on the amount of gold that your country stores. So if you print more money than the amount of gold that the country stores, your currency will fall in price than the money of another country. This will make your country's economy difficult. This is called inflation.

This is actually true. The value of each currency depends on the number of gold reserve the country has. If you print more money that is over the value of the number of gold reserves, then this would eventually lead to the currency being devalued- which again causes hyperinflation.
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