Hi,
"A fantasy world where trees have bank notes and bear coins instead of fruits might sound like a dream come true. Economists will be the devil's messengers in that world when they break the news that your money is as good as dry leaves"
If you are looking for a machine that can print money, just meet someone who actually owns one of the government. Money is printed by governments, but they cannot print all the money they need. When a government prints money to meet its needs without the economy growing at the same pace, the result can be catastrophic.
In the past economy. governments used to back their currencies with gold reserves or a foreign currency such as the US dollar that could be converted into gold on demand. The gold standard currency system was abandoned as there was not enough gold to issue money and currency valuations fluctuated with the supply and demand of gold.
In the modern economy, governments print money based on their assessment of future economic growth and demand. The purchasing power of the currency remains constant if the increase in money supply is equal to the rise in gross domestic product and other factors influencing the currency remain unchanged.
"A fantasy world where trees have bank notes and bear coins instead of fruits might sound like a dream come true. Economists will be the devil's messengers in that world when they break the news that your money is as good as dry leaves"
If you are looking for a machine that can print money, just meet someone who actually owns one of the government. Money is printed by governments, but they cannot print all the money they need. When a government prints money to meet its needs without the economy growing at the same pace, the result can be catastrophic.
In the past economy. governments used to back their currencies with gold reserves or a foreign currency such as the US dollar that could be converted into gold on demand. The gold standard currency system was abandoned as there was not enough gold to issue money and currency valuations fluctuated with the supply and demand of gold.
In the modern economy, governments print money based on their assessment of future economic growth and demand. The purchasing power of the currency remains constant if the increase in money supply is equal to the rise in gross domestic product and other factors influencing the currency remain unchanged.
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