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Why not just print more money?

Updated: 4/28/2022
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14y ago

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Because it doesn't help. Doubling the amount of money in a society would also double the prices (or halve the value of money), so even though you make twice as much money as before you can only buy the same amount of things that you used to. And since the value of money is only half of what it used to be, the value of your savings is suddenly cut in half as well, so you would actually lose money in the process.

The problem is that when there is more money, but the same amount of things to buy, you get the equivalent of a bidding war between everyone who suddenly has more money to spend. When the dust settles, the new market price reflects the new level of money in society.

The way to make everybody richer is not to print more money, but rather to produce more goods more efficiently, as it lowers the price of goods.


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The relationship between the amount of money in society and prices is a bit more subtle than a doubling of one leads to a doubling of the other. In fact, that's rarely true.


The real relationship is between the amount of money available to purchase the output of a society, and the output itself. In other words, we MUST increase the amount of money in the society when economic output increases, or else DEFLATION can occur. Contrariwise, if we increase the amount of money without increasing output, then INFLATION can occur.


Another subtlety to money is that it isn't just the amount that is printed (or minted, in the case of gold): it is the frequency with which it is spent. If people buy and sell things twice as fast as before, there can be INFLATION without one additional banknote or gold coin produced!

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Why can't you just print more money to help boost the economy?

We cant just print more money because we have to mach the money in gold. So if we make more money thin it would be less for later things. (such as wars and disaster response.)


Why does a country borrows money from another country and not just print more?

It messes up the economy.


If money is made of paper why can't you just make more?

Because if you just print more money, then the value of that money will go down because of rapid inflation. It's hard to understand, but it's true.


Why doesnt the government just print more money?

it would simply cause inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . the governmet can suck it


The action not taken by FDR to make more money available was to?

print more money


Why the treasury cannot print dollars to get out of debts?

Paper money can be printed, but if there is no value to back it up, the result is inflation. All money, not just the newly printed currency, loses its value. So it's not smart to just print more paper money than is backed up by real value.


If the government is out of money why cant they just print up more?

Because that causes inflation which lowers the value of the money and you end up with the same or lower total amount of value for your money.


Where does the inauguration money come from?

LOL. It used to come from your taxes, but that has all been spent, so now we just print more money, so it comes out of a machine!


Is it true that banks print money?

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.


Why could Ireland not print more money?

In order to print money you need the gold to back up the printed banknotes in order to keep and even balance


How do they increase the money supply in the economy?

They print more bills in the Treasury.


How does England make ther money?

They print it, just like everybody else.