Post
Topic
Board Economics
Re: how supply of currency decided
by
Tylev
on 25/08/2019, 15:53:19 UTC
how does the currency supply of a country is decided, I searched got that it should be equal to GDP is this true or it's an ideal condition
As far as I know, you can print out paper money in the state in the amount of gross income growth for the year, as well as the amount of increase in national gold and foreign exchange reserves. In addition, paper money is additionally printed on the amount of worn out and replaced banknotes. Also, in practice, they are allowed to print another five percent of inflation, which is considered the norm.