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What problems could arise by each state printing it's own money?
Wiki User
∙ 9y ago
Hi there, I believe the problems that could arise are the same for each nation printing its own money. If you print money, while your productivity, or goods produced stay the same, you get inflation. Each dollar is then worth less. This is the reason why 50 years ago a dollar could buy much more. The world governments basically have been printing money in order to finance their own budgets. I assume you are saying each state gets to print it's own amount of US currency? Or each state having it's own set of notes. The second way you'll have huge problems with exchange rates, 50 different exchange rates, depending on the productivity of each state just within the US! In the first way, then some rogue banker or senator would then have the right to print as much money they wanted which could cause inflation to get out of control. Hope this helps :) Dan
Brandy Ortiz
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What provided most of the money raised by the continental congress for the revolution?
the printing of paper money by Congress and the states
Who is responsible for printing money in the US?
The United States Bureau of Engraving and Printing. See Sources and related links.Note that contrary to popular misunderstandings the Bureau of Engraving and Printing only makes paper money, while the US Mint only makes coins.
Is printing money regulating trade declaring war are what powers?
delegated powers
What was one reason government officials ignored unfair business practice?
Some companies paid them money to ignore these problems.
What was the cause of inflation in the new nation and how could it been prevented?
To ease this hardship, some states began printing large amounts of paper money. The result was inflation. This money had or no real value, because states did not have gold or silver reserves to back it up. They could have prevented it by if the Revolutionary war had not started they wouldn't have had inflation.
Which bureau is in charge of printing money?
The Bureau of Engraving and Printing is in charge of printing money.
Which countries are not presently printing money?
countries not presently printing money
Money printing rules?
Countries do not technically have money printing rules. However most countries discourage over printing of money because then the value of the money decreases.
Why did the articles of confederation not allow the stats to coin their own money?
The Articles of Confederation did allow individual states to coin their own money. This was one of the primary problems with the Articles. The United States Constitution, however, did not allow states to coin their own money. The reason for this is that there was no efficient way of determining the value of one state's currency in relation to another state's. Printing money is different than coining money, however, as coining money means establishing a new unit of currency, while printing money simply means the actual production of those units. When states began printing their own money, this caused problems of inflation, as the value of money depreciated.
What is the Keynesian approach to preventing and solving economic problems in a developed country?
Keynesian economics operates on one principal. Should a country run into economic problems, print money. When additional economic problems arise, rinse and repeat, until the printing of money leads to a debt crisis. Upon which, print even more money, causing the country's currency to collapse. When the citizens revolt, blame capitalism, even if it does not exist in said country. The above anwer is really pointing out whats called 'quantitive Easing'. Printing more money de values a currency.It can work but its a dodgy line to be following.It can lead to hyper inflation & total collapse of a Countries economy.Normally the greedy bankers cause the big problem along with peoples masterialism & getting into debt.
How can you help your auntie out with money problems?
well you could save your money and give it to your aunt
Who controls the printing of money?
Central Bank or any Monetary Authority of that country controls the printing of money.
Why doesn't the US have the federal reserve print more money and give it to the people?
Because, printing more money just does not solve the problem. printing money in an uncontrolled manner causes severe economic problems and devalues the currency. Take Zimbabwe for example, a loaf of bread costs a few million bucks in their local currency because the government resorted to printing more money to ease their financial burden. That resulted in severe devaluation of their currency and it damaged their economy as well.
What is inorganic money?
The printing of money in the absence of the precious metal reserves which the money represents.
What provided most of the money raised by the continental congress for the revolution?
the printing of paper money by Congress and the states
Example of delegated power?
Printing money
Who authorizes the printing of money?
The Department of the Treasury.
