Why can't Government and banks just print more money and get rich ?

Why Banks And Government not print more money?

    The currency value of any country, works on supply and demand, for example if only 1000 kg rise produced in a country. The 1 kg price is 10 ₹, and there are 10 people living in the country whose income is 1000 ₹ per person, then those 10 people will get 100 kg rise in 1000 ₹. If their income increases from 1000 ₹ to 10000. So the 1 kg rise that they used to get 10 ₹, now they have to pay 10000 ₹ for 100 kg. Because Rise Quantity is not increase it remain 1000 kg.
                     
    currency value of any country works on supply and demand.
    Why banks not print more money
               
             The same thing happens with currency, if the banks prints more currency then only inflation Will increase. While the price of the currency will be weak.  Countries like Zimbabwe, Venezuela had made such a mistake which caused huge inflation.

    How does Banks decide how much money to print?
    Value of currency depends on many factors i.e.  inflation, bank interest rates, foreign reserves, foreign investment ,bonds, etc. Generally Central bank of india print currency 2-3% of total gdp.
    it's change over the varies countries, developed countries print less currency than developing countries. it's also depends on population of country. if country produced value for economy by increasing goods and services and exports simultaneously decreasing imports then value of money should be grown up.


          
    Why can't Government and banks just print more money and get rich ? Why can't Government and banks just  print more money and get rich ? Reviewed by MG on January 12, 2020 Rating: 5

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