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Why Should A Country That Prints Its Own Money Be Debt? - Business - Nairaland

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Why Should A Country That Prints Its Own Money Be Debt? by KingMicky3286: 7:21am On Jul 06, 2018
Why should a country that prints its own money be in debt and also run to other countries and organizations to borrow money?
Please i want to know why as i have been thinking why Nigeria is owing a lot of countries and org so much money.

Owning workers salaries and many things..
https://yellownaira..com/2018/07/why-should-country-that-prints-its-own.html

Re: Why Should A Country That Prints Its Own Money Be Debt? by MANNABBQGRILLS: 7:23am On Jul 06, 2018
We used to wonder about this too until we grew up to read about INFLATION!

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Re: Why Should A Country That Prints Its Own Money Be Debt? by MANNABBQGRILLS: 7:26am On Jul 06, 2018
The problem is that printing more money doesn’t increase economic output. Money is just a piece of paper that the government assigns numerical values. In other words, the more money a country prints, the more it is devalued, which leads to inflation (rise in the prices of goods and services).

Suppose a poor country produces 1 million chairs at #10 each. If it starts printing more money, more people will have the money to buy chairs. But it won’t increase production of chairs, they’d still be at 1 million.

But the demand for chairs will increase because people will have more money now. In response, chair manufacturers will raise prices (inflation). Now the same chairs will be sold for more, say #20 each. The economy will increase from #10 million to #20 million but the goods produced (chairs) will remain the same.Nael

Hope this helps?
Ok, bye!

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Re: Why Should A Country That Prints Its Own Money Be Debt? by SUPERPACK: 7:28am On Jul 06, 2018
it will lead to inflation, due to excess cash in circulation, if it is as easy as you think USA with a debt of $17trillion dollars would have done that. But in economics the disadvantage is far greater than the advantage, example zimbabwe.
Re: Why Should A Country That Prints Its Own Money Be Debt? by KingMicky3286: 7:29am On Jul 06, 2018
MANNABBQGRILLS:
The problem is that printing more money doesn’t increase economic output. Money is just a piece of paper that the government assigns numerical values. In other words, the more money a country prints, the more it is devalued, which leads to inflation (rise in the prices of goods and services).

Suppose a poor country produces 1 million chairs at #10 each. If it starts printing more money, more people will have the money to buy chairs. But it won’t increase production of chairs, they’d still be at 1 million.

But the demand for chairs will increase because people will have more money now. In response, chair manufacturers will raise prices (inflation). Now the same chairs will be sold for more, say #20 each. The economy will increase from #10 million to #20 million but the goods produced (chairs) will remain the same.Nael

Hope this helps?
Ok, bye!

Nice seems you are a CBN governor..
Re: Why Should A Country That Prints Its Own Money Be Debt? by KingMicky3286: 7:32am On Jul 06, 2018
Where is Lala.. i really learnt a good lesson from the replies....
Re: Why Should A Country That Prints Its Own Money Be Debt? by MANNABBQGRILLS: 7:33am On Jul 06, 2018
KingMicky3286:


Nice seems you are a CBN governor..
From a Barbecue Specialist to CBN Governor?!
It is POSSIBLE.
Luke 1:37

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Re: Why Should A Country That Prints Its Own Money Be Debt? by bustykasa(f): 7:33am On Jul 06, 2018
Hmmmmm

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Re: Why Should A Country That Prints Its Own Money Be Debt? by KingMicky3286: 7:45am On Jul 06, 2018
bustykasa:
Hmmmmm


YOU used Hmmmmm to book space... Naija sense.
Re: Why Should A Country That Prints Its Own Money Be Debt? by hisgrace090: 8:06am On Jul 06, 2018
In debt because printing more money is never a solution.

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