Post
Topic
Board Economics
Re: why the state does not print a lot of money?
by
Christian31
on 05/06/2018, 00:48:52 UTC
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?
Excessive printing of paper money will change the balance of the economy. It will result to increase of inflation. Since the supply of money will increase, the people can pay a certain item or service in a much higher amount. This will result to the increase of commodities. So this is why, the supply of money is based on the economic performance of a certain country.