Post
Topic
Board Economics
Re: why the state does not print a lot of money?
by
Undermood
on 26/07/2018, 14:08:08 UTC
Because states have to show a response to circulation money. So in order to make money, you have to have gold reserves in your treasure.
Secondly, printing money means injecting more money into the market. If money is available in the market, the value of money falls
When money loses value due to a lot of money in the market, it needs to be spent more in that currency than to be able to get a product. So inflation occurs.