Post
Topic
Board Economics
Re: why the state does not print a lot of money?
by
Blekok001
on 28/05/2018, 06:03:46 UTC
Printing a lot of money will affect its circulation to society, which means it will make people have a lot of money. If this happens then our ability to buy as a society will be higher that will affect our desire to buy an item will be reduced.
In addition, the impact of the amount of money circulating in the community will also affect the value of money that makes its value to fall.
Those are the two reasons why a State does not print a lot of money is to keep a balance between the amount of money circulating in society and the amount of goods needed to keep the value of the currency, because if the State can not pay attention to these two things then there will be economic problems that is INFLATION.
Some examples of countries that have experienced Inflation that greatly affect the country's economic are like : Germany, Zimbabwe and the most severe experienced inflation throughout history that is Hungary.