Friday, January 20, 2012

Why can't the governments just "print money" to overcome the financial crisis?

As if you haven't noticed we already are doing that. Bottom is about to fall out,

Making everything Obama has done become a catastrophe,Why can't the governments just "print money" to overcome the financial crisis?
It can, however, this is not a good idea, because printing money causes inflation. Basically, the dollar loses its value when the government prints more of it because it becomes less "scarce." It would be like if people were allowed to print their own money, the dollar would be worthless, because the fact that someone has to work for their money is what gives it its value.
Inflation... arguably, low levels of inflation are good because they help to relieve debt burden and make exports competitive... fast, high inflation is bad because it outpaces wages and this makes a host of problems. To people arguing that low currency value is a bad thing, look at Dubai and Qatar, which intentionally peg their currencies at 30% value of the USD. There is incentive for a low value currency at times.Why can't the governments just "print money" to overcome the financial crisis?
Every time money is printed with nothing to back it it lowers the value of the money. So if the government just prints out a ton of money you will see $500 loves of bread.
That's called inflation and when that happens the prices go up.The prices really don't go up.The dollar just goes down in valueWhy can't the governments just "print money" to overcome the financial crisis?
the more money there is in circulation, the less valuable it is
I suggest you take Economics 101. It will answer your question far better than what I can.



I don't know how to teach stupid people.
I'll bet you can't balance a check book either.
Look up "Weimar Republic".
I thought they already were.
I do it all the time...
It just doesn't work that way.

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