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Topic: why the state does not print a lot of money? - page 21. (Read 2680 times)

sr. member
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Because printing a lot of money just produces a lot of stocks which could indicates a decrease on the value. Always keep in mind that the more money it circulate on the market as they could print it out the more it losses its value. Just like it would make sense on the system of transaction on the market.
newbie
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Why countries don't always make money, because if a country printing too much money, so the value of money will decline, which can lead to more problems, such as rising prices, inflation and trade surplus
member
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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

yeah correct,! Its simply as the supply and demand the more the supply the more the demand decrease... So the more the supply of the fiat currency the more the low its value.
sr. member
Activity: 420
Merit: 266
Printing more money doesn’t increase economic output in any way –  it merely causes inflation. If the government print too much money and inflation get out of hand, investors will not trust the government and it will be hard for the government to borrow anything at all. Therefore, printing money could create more problems than it solves.
member
Activity: 560
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There is some reason behind the scene and the paper currency printing is limited to make the inflation in control as everyone says. I don't know who fixes this inflation and if a country prints its own currency how other countries will be knowing that is a big question for me from my childhood.
full member
Activity: 295
Merit: 104
Just imagine if the country prints a lot of money, maybe to buy basic needs we need a lot of money. As in the zimbabwe country I heard, the money is not very necessary, because it is too much money. The impact is making economy increasingly maligned, it is very difficult to get basic needs. In essence, domestic money is not needed because so much scored it.
sr. member
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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?
Because printing of money is regulated by the Central Bank, Federal Reserve Bank in US. Failure to balance and regulate the production of bank notes will cause a terrible effect in the entire economy, that would surely leave the country's economy under a serious bankruptcy and may put domestic product in danger of over consumption or improper utilization of natural resources.
newbie
Activity: 69
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Like most Cryptocurrencies, it has its own Circulating Supply and decides whether to add more to the pool of circulating money. They are also careful in creating money because they know that a lot of fake ones can be created too. They are not creating more money because they know that there are already a large amount of money being used and they know that it is enough for the population of people they are accommodating.
newbie
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Additional banknotes can cause serious inflation!
You can see that Zimbabwe has serious inflation and it takes a lot of money to go out to buy food!
The Zimbabwean dollar has become useless, supermarket shelves are empty, people are famined, industrial production is stagnant, public transport, public power is interrupted, and the economy is in a state of collapse!
newbie
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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?

If a country prints a lot of their local currency, then their supply will skyrocket and it will be easier for their people to have a very large amount so, thus, the value of its currency will decrease. But different results will happen if the opposite of this is what they will do. the value of their currency will be high.
member
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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
because if the country prints a lot of money then there will be inflation so that the country will not want to print too much money ...
to print the money the country should see the economic development first, if the economy is stable and need money then the government print money ...
member
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so that the money they make does not lose its relevance and yes it will not be particularly beneficial to them
copper member
Activity: 2940
Merit: 4101
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It is because money is backed up with gold, and if you have no gold, you can not print more money at all, it is a gold reserve something..


For your information money is not backed by gold since 1981  Roll Eyes Some countries don't hold gold (or not a lot) and it doesn't mean it doesn't have money circulating. In another side, some countries own tons of gold it doesn't mean the country has a lot of cash.

Money is not free. Governments don't print money, the central banks do. Governments borrow money and pay a percentage back. So, of course, a govt. can't borrow 100,000 trillion without something to give in return. It creates debt. and governments keep increasing the taxes an keep borrowing money
newbie
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because of economics to keep stable, supply and demand, if supply is high the value of demand decreases
member
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it seems the country does not print too much money because it seems the government already understand if the money in print with a lot of money will be destroyed and collapsed because of too much supply.
hero member
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If a country prints a lot of money then a country will happen a massive inflation so as to make money is not worth anymore and the price of goods will go up large-scale, there are also some countries who print a lot of money but not the profit they get but the stump so if you think by printing a lot of money it can be a solution to pay a profit it might be a big mistake in terms of economics.
State uses a lot of money or budget on the manufacturing of fiat currency or physical money because they prepare papers of same concentrations and numbers of machineries helping in the manufacturing of papers and colors which are very valuable and cost a lot.

Now countries are thinking to save that money and to adopt cryptocurrency and especially the Bitcoin because it has digital existence and not needs any budget. A country can produce more products from Bitcoin which is tripled of the previous product with fiat money.
newbie
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It is because money is backed up with gold, and if you have no gold, you can not print more money at all, it is a gold reserve something..
full member
Activity: 253
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The state control of printing money, they are concerned if the state printed a lot of money then the value of that currency will go down. They dont want if the currency will become worthless because of over supply of money have been made.
full member
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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.


Totally agree. If a state prints more money, then it creates inflation. Printing more money could create more problems than it solves. With lots of money circulating the country, the money devalues because the supply of goods is in shortage.
hero member
Activity: 924
Merit: 500
it seems that the country is not printing a lot of money because it seems the country wants to avoid price inflation so it can make the price of money becomes worthless as it is usually the more the total supply of its price will be very cheap. maybe that's the reason why the state does not print too much money.
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