Saturday, July 11, 2020

"If I got a money printing machine, I would print money as I wished."


We know money as the root of all evil. In fact, how logical in reality. At the present time we see, power, honor and even self-esteem are all verified in the sense of money.

Now let's come to the main point
  • 1. What would you do if you were given a printing press? Definitely print money! And that's what will make you a millionaire. In fact, you know, you will continue to be poor, not a millionaire, as a result of printing money arbitrarily. Can't believe it?
  • 2. If the government of a country wants, it can solve the economic problem by printing money at will in this corona epidemic. The matter is not logical at all.
A country's central bank prints notes / money in balance with internal resources.

A country never develops by printing money arbitrarily but inflation rises. By inflation we usually mean rising prices of goods or services. And with that the value of money decreases. 
For example, I think the total population of a country is 100 people. And all together produce 500 kg of onions. And the total price of onion is 20,000 TK. It can be said that the total wealth of the country is 500 kg and the total money is 20,000. In that case you have to pay 40 TK per kg of onion. Now if the government of that country doubles the value of money by printing money, then the value will be 40,000 TK. But the production of 500 kg onion remained normal. Then you have to pay 60 rupees per kg of onion.

It was understood that the price of any product would double if the money was printed without increasing the total assets . At the same time, the value of the dollar will rise . Then printing money arbitrarily cannot be a solution.

The country can only develop if domestic production as well as total resources can be increased.

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