ice18
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July 27, 2018, 03:30:16 PM |
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The answer is simple if too many paper money will be distributed then the supply will be too much and may resulted into imbalance economy so if the supply is more than demand it means the value will decrease the economy will likely to collapse if too much money will be circulated.
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lixer
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July 31, 2018, 09:27:27 AM |
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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%.
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anntlevel
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August 01, 2018, 08:10:52 AM |
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If the government prints money to pay debt or give to everyone, there will be hyperinflation.for instance, we have 1 million car at 5 $ each. at this moment the money supply will be 5 million. when the government provide triple the money supply, we have 1million car sold at 15$ each. but the number of goods is still the same. the fact that you have more money but if everything is expensive. your life is not better.
One common fact is that of limited resources which is responsible to make a proper amount of product as when it consumes then the product will stop to increase more in quantity. So resources are limiting and controlling the amount of product produce, similarly paper currency is also depending upon resources means the fix budget of a country for its manufacturing.
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alex3.alex03
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August 01, 2018, 08:12:46 AM |
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If the state printed a lot of money, then the Fiat would simply depreciate.
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Portia12
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ADAB ICO
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August 01, 2018, 09:10:53 AM |
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The answer is simple if too many paper money will be distributed then the supply will be too much and may resulted into imbalance economy so if the supply is more than demand it means the value will decrease the economy will likely to collapse if too much money will be circulated.
Yes i agree on that, the economy needs balance and if they will print a lot of money then the value of their fiat will decrease due to the huge amount of volume.
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trako
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August 01, 2018, 09:25:39 AM |
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if governments get money, they will negatively affect this nation's economy. Because states have to show a response to circulation money. So in order to make money, you have to have gold reserves in your treasure. printing money means injecting more money into the market. If there's plenty of money in the market, it's worth the money. When money loses value due to a lot of money in the market, it needs to be spent more in that currency than to be able to get a product. So inflation occurs. these countries are dragged into the economic crisis. and nobody wants it.
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jane05
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August 01, 2018, 09:31:52 AM |
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if governments get money, they will negatively affect this nation's economy. Because states have to show a response to circulation money. So in order to make money, you have to have gold reserves in your treasure. printing money means injecting more money into the market. If there's plenty of money in the market, it's worth the money. When money loses value due to a lot of money in the market, it needs to be spent more in that currency than to be able to get a product. So inflation occurs. these countries are dragged into the economic crisis. and nobody wants it.
With not enough resources you cannot print lots of money if you want. If printing money is easy we people can also do that and the value of it would become to zero.
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VBCryp@
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August 01, 2018, 09:48:18 AM |
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If you print a lot of money it will be inflation and your currency will lose value, money you hold will not buy anything if the country prints a lot of money, and people will not focus on production.
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concept2
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August 01, 2018, 10:18:03 AM |
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Nowadays, almost all of the world currencies are traded in the forex market, and if a particular country is printing its national currency without any limit then its value will go down. Examples are Venezuelan Bolivar and Zimbabwean Dollar.
It is universally acknowledged that if a country prints its currency at an unlimited rate, its value will decrease and the prices of infrastructure, commodities and goods will gradually rise. From the cruel reality in the two countries you said, there is no denying that printing money overly can cause such disastrous, devastating effects on people's lives, especially the poor. They have to live on the breadline, struggle to make it through a day with so little money while the price of everything is so high. They have to literally fight for survival to their last breath, which doesn't bring any good results. They have to leave their homes, their countries. Eventually, that country will collapse. Therefore, the governments can't print too much money.
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MeganJenkins1212
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August 08, 2018, 03:48:16 AM |
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Print more money will lead to inflation that few people really understand why the State does not print more money. Money is valuable because you can use it to exchange goods and services. But printing money does not create more goods and services. Simply put, it only spreads the value of goods and services around the money that exists in the economy. As a result, goods and services will increase, as the amount of money in the economy increases, and the quantity of goods is not. The more money you spend on printing through balance, the more likely inflation, currency devaluation. Then, the bankers must quickly withdraw money to buy gold or foreign currency to avoid inflation, they will buy goods to reserve. And the implication is that instead of spending $ 100,000 to study, you have to spend $ 200,000 to study.
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hungtrajamd12j33
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August 08, 2018, 03:49:26 AM |
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If you print a lot of money then inflation will happen, then it will lose balance in trading, currency devaluation, financial crisis.
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Kadot amoh
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August 08, 2018, 04:59:29 AM |
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so as not to run out for transactions, now comes the bitcoin currency, so that it is better for the economy in this large country, the most favorite is the bitcoin currency, because the bitcoin currency is very legendary.
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ordeath
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August 08, 2018, 11:28:04 AM |
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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?
There are strict boundaries within the laws that regulate the process of creating and printing money, I'm not thinking that there is a way to just print more money in order to have more, because that way money would not have any value.
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almaaaa
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August 15, 2018, 04:10:07 PM |
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It's to keep the value. Simple as thyat. If you print more money then the value of money will decrease, you will have more money you do not participate in production, and all people who will be the producer of goods and services. This is called the economy is inflation. Any thought?
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lionheart89
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August 15, 2018, 07:41:25 PM |
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if the money is printed too much, then the residents will automatically hold a lot of money. That way, our buying ability is high and the items we buy will be reduced. The amount of money in circulation will cause inflation. That is an increase in the price of goods and a decline in the value of a currency. The amount of money in circulation will cause the price to adjust upwards, so that money becomes less valuable and more worthless because there are too many. Therefore, the government prints money according to needs. Not too much and not too little, to avoid inflation.
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rasp
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August 15, 2018, 08:20:57 PM |
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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?
Stable currencies are generally supported by gross domestic product which is based on goods produced by the country and services provided by its citizens. So when lots of money are printed they gradually lose their value - this is called inflation.
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peacefulpeace
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August 15, 2018, 08:26:38 PM |
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the reason why the state print less currency is to sustain the value of the currency, the main aim is to creat scarcity and makes the currency limited in circulation, this is the state own way of sustaining the value of the currency.
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pat4cryptoreal
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August 15, 2018, 10:18:32 PM |
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The major reason is because of inflation. But I think people in the financial technology world will have more explanation to your question. The government still have a way of manipulating the printing to their favour.
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t3ChNo
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August 15, 2018, 10:23:38 PM |
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It has to be backed up by gold.
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Pan Troglodytes
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August 16, 2018, 07:32:38 AM |
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Wait! But they do print a lot of money! Each retail or corporate credit issued by a private bank is just a new money being printed in the form of digital information in a computer.
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