Post
Topic
Board Economics
Re: why the state does not print a lot of money?
by
AleSergio
on 27/07/2018, 13:46:04 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
You have it right. This is the inflation of the currency. When they print more money then they can, it will increase the supply and the demand will grows will still by providing a lot of supply. So it will have a negative effect, thats why they dont print more Smiley