Post
Topic
Board Economics
Re: why the state does not print a lot of money?
by
Kiweikoo
on 05/07/2018, 07:01:07 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.


Agree. It will only get worst. Printing more money doesn't solve anything. It will just cause chaos. And yes it is true, printing more money will cause hyperinflation. It will make money lesser in value. More cash means people do have many to spend. If people have plenty of money to pay and supply gets lesser, this will decrease the purchasing power of money.
One thing is the most common among all the countries which is curiousness about their economies. They are working day and night to improve their economies so it does not mean that they make a lot of paper notes. Manufacturing of paper currency needs a lot of country’s budget so it is not only limited to currency but country has to take care of everything that is the most probable reason for it.