Referral Code: NITISH18
#pillow

Why does the government print only a limited amount of #money, why the world has accepted #USdollar as a global currency, why Indian #Rupee has lost its value against #dollar over time. How does a #currency loses or gains value.
Lets discuss

Book: The Broken Pillars of Democracy by Nitish Rajput
Hindi:
English:

Social Links:
Instagram:
Twitter:
Facebook:
Youtube:
Website: …(read more)

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Money and currency system has become an integral part of our lives. The role of money is crucial as it is the medium of exchange and is used to purchase goods and services. The government has the authority to control and regulate the issuance of money, but why can’t they print an unlimited amount of money?

The answer lies in the concept of inflation. Inflation is defined as the increase in the price of goods and services in an economy over time. When there is too much money in circulation, the prices of goods and services increase which leads to inflation. Governments printing an unlimited amount of money will lead to an increase in the money supply, which means that the available goods and services will still remain the same. This then leads to an increase in the prices of goods and services.

When prices of goods and services increase, people feel that they have less purchasing power as they have to pay more for the same items they purchased previously. This then causes a decrease in consumer spending, which in turn leads to a decrease in economic growth. Inflation also affects the value of the currency, as its purchasing power decreases. The more money that is in circulation, the less value it has.

Printing an unlimited amount of money also affects the economy as it leads to a decrease in investor confidence. If investor confidence goes down, it leads to a decrease in foreign investment, which in turn leads to a decrease in demand for the currency. This further affects the value of the currency.

Furthermore, printing an unlimited amount of money leads to an increase in the national debt. If the government spends more than what it earns, it leads to an increase in the national debt. Printing more money to cover the debt will only lead to further inflation and decrease in economic growth.

In conclusion, governments cannot print an unlimited amount of money as it leads to inflation, decrease in the value of the currency, and decrease in economic growth. It is important for governments to regulate the money supply to maintain a stable economy.