Because the government is only basing their money to their dollar reserves and gold reserves which is an international medium of exchange.If the government produces more money than the value of their reserves,it is called inflation.
No. Only the central bank of the country can print money. Counties cannot print their own money. They have to get it from the central bank/government. For ex: Reserve Bank in India and the Federal Reserve in the USA are the respective entities that are entitled to print money in their countries (India and USA). Each country has a corresponding entity that prints money for the country's use.
Not all countries print their own money. A country can only print money if it is in control of its currency like Japan and the US. One country that cannot print money is Greece because they are not in control of the Euro.
Because they refused to print paper money and was trying to pay off war debts
Washington D.C.
In the US, it is the US Government alone that has the authority to print currency.
Germany
In the US, it is the US Government alone that has the authority to print currency.
yes
The governments money is tied to the economic and actual weath of the country. If the government did print unlimited money this would de-value the money and make it worth less. This leads to hyper-inflation as is being witnessed in Zimbabwe and what was witnessed in Germany after the wall street crash.
No, banks just keep money. Printing money, on the other hand, is done by the government. WRONG. Our government does not print money. The Federal Reserve, which is a private bank, sends orders in to print money to the U.S treasury. They then flood the economic system with money that is not backed, causing inflation.
america
No, California cannot create its own money as that is within the authority of the federal government by the U.S. Constitution. States in the U.S. are not allowed to print their currency.