harry asked in Social ScienceEconomics · 1 month ago

how printing money affects the economy?

4 Answers

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  • Anonymous
    1 month ago

    Nowadays, very little money is actually printed. BANKS create giral money out of thin air all the time. This does not necessarily cause inflation (although the interest does).

    If the newly created money directly lands in the hands of those who have no need to spend it, nothing happens.

    If the newly created money lands in the hands of the poor, they will spend it on necessities (which may lower the prices as the retailer sells more items), and money will trickle up to business-owners and shareholders

  • Anonymous
    1 month ago

    Maybe there will be a greater demand for CUSTOM PACKAGING to hold all that money !!!!!

  • Anonymous
    1 month ago

    In economics, there are many way to print the money. First, to replace the old one after 10-12 years in use. Second, to increase money supply regularly according to the growth of GDP. Third, to print money for political purpose when the growth of real GDPis approaching zero. Only the last one will increase public debt and inflation. it has been two hyper inflations on earth. One was the Deutsche Reich in Germany to pay back the high debts. Second was in Zimbabwe due to economic collapse. Now they are a great country. So,it is not that bad. The US has printed the money since 2008. Now it was doing well if there would not be a pandemic.

  • Petter
    Lv 7
    1 month ago

    Inflation to the nation.

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