When it comes to monetary policies, stock exchange and many other economic/business issues i am still in d ice age.
SOMEBODY WITH ECONOMIC KNOWLEDGE PLS XPLAIN TO ME WHY A NATION CANT PRINT MONEY(THERE OWN CURRENCY) IN TIMES OF CRISIS LIKE THE ONE WE RE XPERIENCING NOW IN NAIJA.
WHY NOT JUST PRINT MORE NAIRA?






If u kn pls xplain in lay man's language because more economic terms wud confuse.

I wonder o. Lol
Punishing puself with the rule that ,money must be scarce

Have u heard of INFLATION before

Go and ask robert mugabe and zimbabweans about it.
He will teach you with experience about the effect.
Op,How old are you by the way?

K

I gbadu u op,
its not my fault nairaland i skiped class alot during my sec days
please some expert should come and do justice to our curiousity :' :'

the U.S has been 'printing money' for five years now .....Quantitative Easing....google


in the case of nigeria- na chop dem go chop the money

If a central bank prints more currency indiscriminately, there would be problems. The main problem is inflation. Inflation is when the amount of money in the economy increases without a corresponding increase in the production of goods and services. So, much money are now chasing few goods. Prices of goods rise because more goods are needed than are available. This means you need more money to buy the same quantity of goods. Imagine buying bread for N100 in the morning and it costing N200 by evening.

Also, your goods become more expensive for foreigners to purchase; although, you can buy goods from foreigners cheaply. That is quite bad because you won't be able to get enough income from abroad while the foreigners use you as their income source. This reduces the country's external stock of money, as money is going out without replenishment. You get my drift, right?

Furthermore, when there's too much money, people are less likely to save because the value of money has dropped; meaning that the money that they save today worth less tomorrow. Nobody wants to save money that would be useless tomorrow. Investment is savings-driven. So, less savings equal less investment. Less investment leads to low growth in real output, which leads to low development in the country.

These are some examples. You can google up to get more information if you aren't yet convinced.

klodike:
Have u heard of INFLATION before

YES.......bt hw wud it cause inflation dats my question.

phantonce:
Go and ask robert mugabe and zimbabweans about it.
He will teach you with experience about the effect.
Op,How old are you by the way?

A little bit older than u re.

btw: i wud go read about d Zimbabweans case.
tanx

LaRochelle:
If a central bank prints more currency indiscriminately, there would be problems. The main problem is inflation. Inflation is when the amount of money in the economy increases without a corresponding increase in the production of goods and services. So, much money are now chasing few goods. Prices of goods rise because more goods are needed than are available. This means you need more money to buy the same quantity of goods. Imagine buying bread for N100 in the morning and it costing N200 by evening.

Also, your goods become more expensive for foreigners to purchase; although, you can buy goods from foreigners cheaply. That is quite bad because you won't be able to get enough income from abroad while the foreigners use you as their income source. This reduces the country's external stock of money, as money is going out without replenishment. You get my drift, right?

Furthermore, when there's too much money, people are less likely to save because the value of money has dropped; meaning that the money that they save today worth less tomorrow. Nobody wants to save money that would be useless tomorrow. Investment is savings-driven. So, less savings equal less investment. Less investment leads to low growth in real output, which leads to low development in the country.

These are some examples. You can google up to get more information if you aren't yet convinced.

Tanx very much.
wat if d govt. prints money bt circulate it cautiously(say jus to pay civil servants dere salaries only)