Post
Topic
Board Economics
Re: why the state does not print a lot of money?
by
cryptodoe
on 01/05/2018, 09:33:25 UTC
States do print money as a mechanism to control the economy (not control in the sense of dictatorial control, but management). When a state is in deep debt, or the economy needs a boost it isn't uncommon for central banks who have control over their own currency to commission a new amount of currency. This way, the value of the debt is decreased. The negative effects on consumers are managed or ignored, depending on the interests of the moment.

On the other hand, they don't always need to "print" money:

https://www.investopedia.com/terms/q/quantitative-easing.asp

They can just buy their own debt.