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Author Topic: why the state does not print a lot of money?  (Read 2641 times)
EVOS (OP)
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April 30, 2018, 07:33:30 AM
 #1

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
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usahaali03
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April 30, 2018, 08:06:25 AM
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 #2

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
aoihs00
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April 30, 2018, 08:13:19 AM
 #3

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

Exactly right!

This calls for the inflation of the fiat currency.

When they will print more money then it will increase the supply of the fiat thus though the demand grows you will still have lot of supply. This way the circulation will keep on going in negative way. Thus it will do the demonetization of the currency.

Thats why they dont print more.
Kim Ji Won
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April 30, 2018, 08:19:16 AM
 #4

The concept here is just like the supply and demand of bitcoin which is I'm sure you have an idea of. If a country prints a lot of their local currency, then their supply will sky-rocket and it will be easier for their people to have a huge amount of it so, in a result, the value of its currency will decrease. But a different result will happen if the vice-versa of this is what they will do.
charleslandlord
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April 30, 2018, 08:25:41 AM
 #5

I'm playing Landlord Real Estate Tycoon and I'm always curious - why can not they give me some money? Wink And it really taught me the basics of economics and real estate.
ralle14
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April 30, 2018, 08:48:56 AM
 #6

There's a reason why countries don't print out money easily just to make their country more valuable. Users above me already pointed it out, printing more money will always have an impact because the demand won't equalize with the supply making it less valuable than other currencies if they produce too much. If you want more answers you can just look it up on google there are countries that did inflate their currencies before and it didn't end well for them.

The concept here is just like the supply and demand of bitcoin which is I'm sure you have an idea of. If a country prints a lot of their local currency, then their supply will sky-rocket and it will be easier for their people to have a huge amount of it so, in a result, the value of its currency will decrease. But a different result will happen if the vice-versa of this is what they will do.
It's not the same with Bitcoin because it has a limit and fiat doesn't.

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sheenshane
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April 30, 2018, 09:41:51 AM
 #7

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
The answer to the OP is here, they monitored and controlled printing paper money is to maintain the value of the currency in each country.
Printing more currency does not ensure an economy’s growth, progress or expansion, but rather stagnates it due to inflation, that why they limit of printing money.
Now the question is that why don't they just print money and distribute it to people. Will that make people rich??

It's not the same with Bitcoin because it has a limit and fiat doesn't.
Exactly.

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Tankdestroyer
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April 30, 2018, 10:30:23 AM
 #8

Now the question is that why don't they just print money and distribute it to people. Will that make people rich??
If they do that, then those money will be useless later on because it's value would decrease and the whole country in general will suffer. Like what other stated above, it will inflate the national currency of a country if they did that.
It's not the same with Bitcoin because it has a limit and fiat doesn't.
He is not talking about the total supply, but it's value in general and he just made use of the supply and demand to describe how bitcoin and fiat can increase or decrease in value.
cmacwiz
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April 30, 2018, 11:30:57 AM
 #9

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
If the state prints more money then the  alien of its currency decreases globally and this further leads to inflation and less confidence of people on the currency. The very best example was seen in Germany after the second world War when Germany lost the war then it printed very large quantity of money to pay off its debt and this caused hyper inflation leading the prices of the daily goods to the moon.
anwar98
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April 30, 2018, 11:51:47 AM
 #10

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
Why did not the government print as much money as possible?
Because printing money will affect inflation.
So, if a country prints money constantly in large quantities, then it is not called wealth because the value of its currency will actually continue to decline.
PsylockReborn
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April 30, 2018, 12:19:08 PM
 #11

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?

Literally it's more easier to print out money but there are factors that needs to be considered before printing a lot of money. Printing a lot of money will cause inflation and the people will be affected specially those who belong to the lower class. The primary cause of inflation is the printing out of too much money by the government. As a result, too much capital chases too few goods.

The theory of monetarism will just provide a temporary boost to economic growth and job creation. Over the long run, it will increase inflation. As demand outstrips supply, prices will rise. https://www.thebalance.com/monetarism-and-how-it-works-3305866

It's like providing instant gratification to people by providing them jobs but in the long run its the people that will suffer due to the increase of prices so it will surely create a huge impact to the people specially to less fortunate ones that are living pay check to pay check.

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April 30, 2018, 12:23:15 PM
 #12

Well at the end the inflation would make much more harm than saving the country just like the Spain Gold Inflation: The price revolution, sometimes known as the Spanish Price Revolution, was a series of economic events that occurred between the second half of the 15th century and the first half of the 17th century, and most specifically to the high rate of inflation that occurred during this period across Western Europe. Prices rose on average roughly sixfold over 150 years. This level of inflation amounts to 1–1.5% per year, a relatively low inflation rate for modern-day standards, but rather high given the monetary policy in place in the 16th century. Generally it is thought that this high inflation was caused by the large influx of gold and silver from the Spanish treasure fleet from the New World, including Mexico, Peru, and the rest of the Spanish Empire.

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April 30, 2018, 12:25:40 PM
 #13

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
Of course it will be very influential because with more and more a country to print money the value will decrease. That can be said as a price fluctuation, as well as demand factors, the more difficult to find the price will increase and when the money is more easily obtained then the price will decrease. That is why a country prints money in a limited way, because there is also a regulation that regulates it.
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April 30, 2018, 12:55:21 PM
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Your idea is very naive, if the country raises money, can cause currency depreciation, price rises, cause inflation!

Inflation can lead to economic instability in the country!
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April 30, 2018, 04:38:27 PM
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Printing a lot of money is against the Economic law of money supply and demand in relationships with interest rate, purchase rate and inflation. .more money in circulation more inflation
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April 30, 2018, 04:55:12 PM
 #16

If only things were that easy. Imagine that Bitcoin's total supply was 21,000,000,000,000. Do you think the value of each individual Bitcoin will be the same? Now if you print more money what do you think it's going to happen to that currency?
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April 30, 2018, 05:06:07 PM
 #17

If only things were that easy. Imagine that Bitcoin's total supply was 21,000,000,000,000. Do you think the value of each individual Bitcoin will be the same? Now if you print more money what do you think it's going to happen to that currency?

They will turn into another Zimbabwe :

https://www.telegraph.co.uk/news/worldnews/africaandindianocean/zimbabwe/2479937/Zimbabwes-worthless-100bn-notes-sell-for-huge-profit-on-eBay.html

Hyperinflation will be the end result : Hyperinflation occurs when a country experiences very high and usually accelerating

 rates of inflation, rapidly eroding the real value of the local currency, and causing the population to minimize their holdings

of local money. Source : https://en.wikipedia.org/wiki/Hyperinflation

You cannot print yourself out of financial problems and most governments do not get that.  Roll Eyes

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April 30, 2018, 06:05:33 PM
 #18

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
its impact the value of money. I do think you got thing in high school. There is a lot reasons why they can print it cause it will make an inflation.  I do think there a lot thing to consider before the goverment make more new money.

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April 30, 2018, 06:13:29 PM
 #19

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?

Yes, if a country prints a lot of money and keeps printing as much as possible, the exchange rate in the country will decrease, money will become less valuable and the country's economy will be chaotic.

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April 30, 2018, 07:54:19 PM
 #20

why countries do not print money, because if too much money then the value of the country's currency will go down so they prefer to borrow to other countries. Just as with coins if too much supply but no interest then the value of the coin will go down
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