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Author Topic: why the state does not print a lot of money?  (Read 2651 times)
iram1011
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May 24, 2018, 05:45:51 AM
 #81

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?
You would have had the answer to this question had you been a part of Economics - 101! So I will explain the principle behind that.
Suppose a country prints out lots and lots of money. Now this money is supposed to be distributed to every person of the country.
Up until now their total income was say 10,000$ a month and they were able to manage their household expenses and save a little bit out of it. Now, they will have more in hand, let's say 15000$. That extra 5000$ is over and above their expenses and savings. So these people would now go outside and spend this money on luxury items. Same would happen for every household out there, and hence, this would result in increase in the price of the luxury items and hence inflation of every such product.
Hence, a country has to keep the printing in check. The more money it prints, the more inflation it causes.
xiwanfd
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May 24, 2018, 06:07:35 AM
 #82

If a country is printing money instead of making money, the end result is inflation, and the money will depreciate like venezuela.

The emergence of bitcoin has allowed people to avoid this dilemma.
gambitcoin53
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May 24, 2018, 06:12:47 AM
 #83

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?
You would have had the answer to this question had you been a part of Economics - 101! So I will explain the principle behind that.
Suppose a country prints out lots and lots of money. Now this money is supposed to be distributed to every person of the country.
Up until now their total income was say 10,000$ a month and they were able to manage their household expenses and save a little bit out of it. Now, they will have more in hand, let's say 15000$. That extra 5000$ is over and above their expenses and savings. So these people would now go outside and spend this money on luxury items. Same would happen for every household out there, and hence, this would result in increase in the price of the luxury items and hence inflation of every such product.
Hence, a country has to keep the printing in check. The more money it prints, the more inflation it causes.

good explanation, actually inflation will be dangerous once it crossed boarders of each country, every country has a monetary reserves, they can only print based on how many funds they have, printing beyond their reserves will result to a destabilized economy, more buying powers will decrease supplies, so countries will rely on importation but since their money once converted to foreign currencies will be undervalued, it will cost them more but will acquire products less. take a look at a dollar is equal to 45 pesos, it is a clear inflation though manageable, it is still a sign that your currency is undervalued.

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jhongzjhong
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May 24, 2018, 06:37:07 AM
 #84

good explanation, actually inflation will be dangerous once it crossed boarders of each country, every country has a monetary reserves, they can only print based on how many funds they have, printing beyond their reserves will result to a destabilized economy, more buying powers will decrease supplies, so countries will rely on importation but since their money once converted to foreign currencies will be undervalued, it will cost them more but will acquire products less. take a look at a dollar is equal to 45 pesos, it is a clear inflation though manageable, it is still a sign that your currency is undervalued.
Well said mate a good explanation to us, in addition to your statement above, it is clear that they can't provide or more print more money because every country have already a value on their own money and it has monetary reserves which are limited to have. Central Banks was who knows the value of the currency and they are the one who manages it. Then there was an inflation in every foreign currency exchange.

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May 24, 2018, 06:52:16 AM
 #85

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?


The state does not print a lot of money simply becuase it will leads to inflation.   It is not easy just to request to print more money  as it is controlled by each government and it will not help to increase the economic output. They better choose to borrow money from other countries  than to put in stake the economy of the country.
Sled
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May 24, 2018, 09:35:16 AM
 #86

The states are not printing a lot of money because it will trigger the inflation to go higher and higher and it will just make almost all the things worthless which is not a good thing because the economy of the country will go down hard and that will be the cause for their country to fall and to get outperformed by the other countries behind them.
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May 24, 2018, 09:44:07 AM
 #87

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?
I think they didn't print a lot of money because it will cause of trouble like the value of the currency will going down all countries has a maximum numbers of print per amount of bill.
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May 24, 2018, 10:10:13 AM
Last edit: May 24, 2018, 10:22:33 AM by bitcad4u
 #88

They can print a huge amount of money in few days.But it will totally reduce the value of money.Only for this reason,state does not print a lot of money.If they get the debts,they can pay at the time of money printing.It's very easy one for them.And it will reduce that state economy for sure.
Dudeperfect
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May 24, 2018, 04:08:10 PM
 #89

Well, it doesn't make any sense to print the money unless you have that much of production. Even if your country is printing money with a double rate as compared to that of the normal rate then the purchasing power of that money will reduce. If the amount of any product is $10 before printing the extra money they will have to pay $20 for the same product because there is more money to spend but there is no growth in the actual production of the goods and services. I would prefer to carry less money with high purchasing capacity instead of too much money with less capacity to buy the things from the market.
Vinalians
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May 24, 2018, 04:28:18 PM
 #90

That is very very interesting question here in the forum. People always saying that "Why don't they just print a lot of money and give them away to all people" Well, some people are not understand the rule of demand and supply. Some of them also not knowing the bad effects of what they are thinking. They are not printing a lot of money because if that happen the rule of demand and supply will vanish and almost all of the people will be tired to get money; money will be having no value at all if that happen.
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May 24, 2018, 04:38:26 PM
 #91

Because of this problem, we often wonder why Indonesia does not print a lot of money in order to pay all debts and finance the country as a whole, also for Indonesia to be free from poverty? But apparently, printing as much money as possible is not a solution to overcome the Indonesian economy.
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May 24, 2018, 04:44:03 PM
 #92

Because there is somethings that must be done in the proper way. If we will print money as much as we can it will be our fault if the value will crash immediately. That's why to print money is not a games that you can correct if you did mistake. Once you print it will be use to circulate in the world of exchange.
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May 25, 2018, 07:42:19 PM
 #93

That’s a common misconception to every child, but printing unlimited amount money can be disastrous for the economy. If any government tries to print more money, this will hinders the equilibrium of demand and supply and they will face consequences. If everyone will have 1lakh in their account, there will be more expectations by them, so price of a good which was 10 Rs earlier will increase to manifold. Same is the case with injecting money.
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May 25, 2018, 07:46:36 PM
 #94

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?

All the countries has different volume of money on which they need to create or not because the price will be decreasing on a huge amount if the volume increase so much in the market just like cryptocurrency.

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May 25, 2018, 07:53:00 PM
 #95

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?
Keeping and regulating a certain amount if money gor a statw is a muat. They couldn't just print and print money for everyone to hage and use because it will lose its value. This is what happened with the Japanese Regime in the Philippines way back during the Japanese colonization. Tgey printed too much money for people to use that a ganta of rice (1 kilo) must be payed with a sack full of Japanese money.
jayyen
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May 25, 2018, 08:34:21 PM
 #96

The state cannot print its own money just like that because money will become abundance and lose its value and people will suffer for it.Like what happened in Zimbabwe during the rule of Robert Mugabe and people had to carry a full bag of money just to go and buy a loaf of bread.It is not good for a country to just print money like that.
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May 25, 2018, 09:38:20 PM
 #97

If a country prints too much money there will be a massive inflation so that the price of goods rises and the eyes are not worth anymore then there will be a deterioration of the quality of a country in economic terms, so instead will make a country's economy worse.

ejandjm18
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May 25, 2018, 11:56:24 PM
 #98

First, because that would make all the rich and middle-class people angry, and they would surely demand to be given those bills too.

Second, giving poor people tons of money won’t guarantee that they’d spend it wisely. If having millions automatically guarantees you’ll stay rich for the rest of your life, then why do you some lottery winners go bankrupt after a few years?

Plus, as they say… “Give man a fish, and he’ll eat for a day. Teach him how to fish, and he’ll eat for the rest of his life.”

Third, and probably the main reason why you can’t just print money and give it to everyone is because hyperinflation will happen.
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May 26, 2018, 12:02:37 AM
 #99

One word: inflation.
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May 26, 2018, 12:09:22 AM
 #100

 printing of currency  is inversely proportional to value of currency....
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