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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.)
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∙ 15y ago
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Why can't states print their own money?
Without a central recognised currency the economy could not function and would collapse.
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Because money is like diamonds. If there were more diamonds in the world they would be cheaper no doubt, because they would be less rare. In addition, competing companies would battle to sell at the lowest price. Money is the same, the more you print the less value it has. Why do you think the United Kingdom pound sterling has strong value? Because the British are smart and know when to stop printing and when to start to balance out with the needs of banks and business.
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Why can't states print their own money?
Without a central recognised currency the economy could not function and would collapse.
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i think Argentina did this a few years back and nearly destroyed their entire economy. because each country can only print money for the amount money it actually has. e.g. if a country is worth $10 billion and prints money that equates to $20 billion, inflation etc will effect the value of the money so it becomes virtually worthless. just take a look at Zimbabwe they have what is known as 'hyper-inflation' and you would need thousands of Zimbabwe dollars to equal just a few US dollars
