Post
Topic
Board Economics
Re: why the state does not print a lot of money?
by
aoihs00
on 30/04/2018, 08:13:19 UTC
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.