Post
Topic
Board Economics
Re: why the state does not print a lot of money?
by
BarbieCasino
on 12/06/2018, 09:28:48 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
This is the main reason, consider Zimbabwe, they print a lot and don't have mineral resources, so not much export. The rate of inflation there is phenomenal in billions
Printing a lot of money simply does not solve any problem but create a severe one. If a state print huge money, the purchasing power of the money decreases and as a result inflation occurs in the market. Also if a state prints a lot of money, they have to reduce their money value in the international market which no country would like. So a state would never print a lot of money.