Post
Topic
Board Economics
Re: how supply of currency decided
by
seraph_the_wise
on 25/08/2019, 23:41:23 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

In theory it should be decided according to various economic goals, including target interest rate, inflation, expected growth, GDP, foreign trade, FX, foreign reserves and others.
In practice, as a government body / central bank you can do whatever you like (with corresponding consequences of course)