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Topic: why the state does not print a lot of money? - page 33. (Read 2679 times)

sr. member
Activity: 882
Merit: 282
Printing a lot of money is against the Economic law of money supply and demand in relationships with interest rate, purchase rate and inflation. .more money in circulation more inflation
member
Activity: 392
Merit: 10
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!
legendary
Activity: 1526
Merit: 1001
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?
Of course it will be very influential because with more and more a country to print money the value will decrease. That can be said as a price fluctuation, as well as demand factors, the more difficult to find the price will increase and when the money is more easily obtained then the price will decrease. That is why a country prints money in a limited way, because there is also a regulation that regulates it.
newbie
Activity: 96
Merit: 0
Well at the end the inflation would make much more harm than saving the country just like the Spain Gold Inflation: The price revolution, sometimes known as the Spanish Price Revolution, was a series of economic events that occurred between the second half of the 15th century and the first half of the 17th century, and most specifically to the high rate of inflation that occurred during this period across Western Europe. Prices rose on average roughly sixfold over 150 years. This level of inflation amounts to 1–1.5% per year, a relatively low inflation rate for modern-day standards, but rather high given the monetary policy in place in the 16th century. Generally it is thought that this high inflation was caused by the large influx of gold and silver from the Spanish treasure fleet from the New World, including Mexico, Peru, and the rest of the Spanish Empire.

member
Activity: 420
Merit: 24
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?

Literally it's more easier to print out money but there are factors that needs to be considered before printing a lot of money. Printing a lot of money will cause inflation and the people will be affected specially those who belong to the lower class. The primary cause of inflation is the printing out of too much money by the government. As a result, too much capital chases too few goods.

The theory of monetarism will just provide a temporary boost to economic growth and job creation. Over the long run, it will increase inflation. As demand outstrips supply, prices will rise. https://www.thebalance.com/monetarism-and-how-it-works-3305866

It's like providing instant gratification to people by providing them jobs but in the long run its the people that will suffer due to the increase of prices so it will surely create a huge impact to the people specially to less fortunate ones that are living pay check to pay check.

member
Activity: 336
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?
Why did not the government print as much money as possible?
Because printing money will affect inflation.
So, if a country prints money constantly in large quantities, then it is not called wealth because the value of its currency will actually continue to decline.
sr. member
Activity: 704
Merit: 270
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 the state prints more money then the  alien of its currency decreases globally and this further leads to inflation and less confidence of people on the currency. The very best example was seen in Germany after the second world War when Germany lost the war then it printed very large quantity of money to pay off its debt and this caused hyper inflation leading the prices of the daily goods to the moon.
full member
Activity: 476
Merit: 107
Now the question is that why don't they just print money and distribute it to people. Will that make people rich??
If they do that, then those money will be useless later on because it's value would decrease and the whole country in general will suffer. Like what other stated above, it will inflate the national currency of a country if they did that.
It's not the same with Bitcoin because it has a limit and fiat doesn't.
He is not talking about the total supply, but it's value in general and he just made use of the supply and demand to describe how bitcoin and fiat can increase or decrease in value.
legendary
Activity: 2366
Merit: 1206
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
The answer to the OP is here, they monitored and controlled printing paper money is to maintain the value of the currency in each country.
Printing more currency does not ensure an economy’s growth, progress or expansion, but rather stagnates it due to inflation, that why they limit of printing money.
Now the question is that why don't they just print money and distribute it to people. Will that make people rich??

It's not the same with Bitcoin because it has a limit and fiat doesn't.
Exactly.
legendary
Activity: 3290
Merit: 1901
Shuffle.com
There's a reason why countries don't print out money easily just to make their country more valuable. Users above me already pointed it out, printing more money will always have an impact because the demand won't equalize with the supply making it less valuable than other currencies if they produce too much. If you want more answers you can just look it up on google there are countries that did inflate their currencies before and it didn't end well for them.

The concept here is just like the supply and demand of bitcoin which is I'm sure you have an idea of. If a country prints a lot of their local currency, then their supply will sky-rocket and it will be easier for their people to have a huge amount of it so, in a result, the value of its currency will decrease. But a different result will happen if the vice-versa of this is what they will do.
It's not the same with Bitcoin because it has a limit and fiat doesn't.
newbie
Activity: 1
Merit: 0
I'm playing Landlord Real Estate Tycoon and I'm always curious - why can not they give me some money? Wink And it really taught me the basics of economics and real estate.
full member
Activity: 350
Merit: 110
The concept here is just like the supply and demand of bitcoin which is I'm sure you have an idea of. If a country prints a lot of their local currency, then their supply will sky-rocket and it will be easier for their people to have a huge amount of it so, in a result, the value of its currency will decrease. But a different result will happen if the vice-versa of this is what they will do.
sr. member
Activity: 700
Merit: 300
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.
jr. member
Activity: 74
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
newbie
Activity: 141
Merit: 0
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?
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