I only knew that there are some rules and regulations which has to be followed to print money... and thats what i said them though it never served as an answer to their question... This post is my attempt to anwer the question...
Money should not be printed just like that. Money is essentially a promise to deliver something of its value. Societies had relied on the systems where currency used in trade was either composed of a physical commodity such as precious metals like gold, silver or copper or other commodity items such as crops, food etc..
But its not any more- Its just the belief that people will give goods and services in exchange for money.
If the government simply prints more money, the only effect will be to devalue it. The more they print, the less will be the worth…..
Still if they are printing more money, they are making more promises which they can’t fulfill!! People will start using this extra money, to pay back the debts and will start spending it, and buying stuff that the other people want. And since they have so much of this extra money, they will pay over rates, and prices will rise. Which means, that the money becomes worth less :( the effect is called Inflation.
Corrupt politicians have tried this many times in the past, and each time it brings inflation, it actually takes about two years for the new money to work through into inflation.
The rich can move their money into investments like land, stocks etc... But people on fixed wages, pensions etc...are the people who get screwed:( This is the reason why people are suffering coz of sick inflation :(
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