Quote from: AleSergio on July 27, 2018, 01:46:04 PM

Quote from: usahaali03 on April 30, 2018, 08:06:25 AM

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

Not only that but there are more consequences to the excess printing of money. Printing excess of money not being backed by the gold or bullion is in other terms giving rise to inflation and the monetary policy responds in such situation.

It is only the production of goods and services that can rise your GDP and not the printing of money. Excess printing of money was rejected by the people of Venezuela during the money crisis when the inflation was 13000%.