Iolo:


Let me try to...though it’s a lot more complex theoretically than what I’m about to say.

Think of every country as a market in economic terms, a market is usually made up of two sides (buyers and sellers), buyers represent demand while sellers represent supply. Inflation is largely driven by the relationship between aggregate demand and supply in the economy. If demand overly exceeds supply then you have inflationary tendencies, if supply exceeds demand you have deflation, which is less common but a bigger problem than inflation.

Printing money isn’t directly the issue as if a Government prints money and hides it somewhere in a vault without spending it then it will have no ripple effect. The challenge starts when the government starts to spend printed money, as doing this will increase the total money supply in the economy, and without an attendant increase in productivity (ability for the economy to generate supply), prices will go up.

For example, you use printed money to pay salaries say to increase salaries from 30k minimum wage to 50k. That additional money in people’s pockets is going to be spent on goods. The biggest part of the inflation index here in Nigeria is the Consumer Price Index (which basically tracks the prices of a select number of staple foods that ppl normally buy like rice, beans etc.) In Nigeria, about 60% - 70% of income is spent on food and consumables according to the NBS (I don’t recall the specific figure but it’s higher than 50%).

The suppliers of these goods will see an increase in demand and because they have the same number of goods for sale, they will increase prices to respond to the increased demand in the market. This increase in prices at an aggregate level is what is termed as inflation.

Hope this helps?

Very helpful.. thanks for this

oglalasioux:
If you print more money can you use it for import payments? No.

Paper money is tied to commodities with higher values such as gold or the US dollar. Your country's paper money must be at par with the gold or currencies of nations with strong gold base with the central bank. When there's a deficit you

1. devalue your currency or
2. borrow or
3. increase exports or
4. Attract foreign investments.

yes you can use it for import payment.

ContractKiller:
I've heard university graduates ask similar questions.

you are very stupid and senseless.. if you quote me then you are confirmed mòron

Oblitz:
Money is a store of value.
If you print more money, the excess cash won't have value. Money represents something (value). When that something does not exist, the excess cash would lose value.

Correctly said.

Iolo:


Let me try to...though it’s a lot more complex theoretically than what I’m about to say.

Think of every country as a market in economic terms, a market is usually made up of two sides (buyers and sellers), buyers represent demand while sellers represent supply. Inflation is largely driven by the relationship between aggregate demand and supply in the economy. If demand overly exceeds supply then you have inflationary tendencies, if supply exceeds demand you have deflation, which is less common but a bigger problem than inflation.

Printing money isn’t directly the issue as if a Government prints money and hides it somewhere in a vault without spending it then it will have no ripple effect. The challenge starts when the government starts to spend printed money, as doing this will increase the total money supply in the economy, and without an attendant increase in productivity (ability for the economy to generate supply), prices will go up.

For example, you use printed money to pay salaries say to increase salaries from 30k minimum wage to 50k. That additional money in people’s pockets is going to be spent on goods. The biggest part of the inflation index here in Nigeria is the Consumer Price Index (which basically tracks the prices of a select number of staple foods that ppl normally buy like rice, beans etc.) In Nigeria, about 60% - 70% of income is spent on food and consumables according to the NBS (I don’t recall the specific figure but it’s higher than 50%).

The suppliers of these goods will see an increase in demand and because they have the same number of goods for sale, they will increase prices to respond to the increased demand in the market. This increase in prices at an aggregate level is what is termed as inflation.

Hope this helps?

wow nice explanation

Iolo:


Let me try to...though it’s a lot more complex theoretically than what I’m about to say.

Think of every country as a market in economic terms, a market is usually made up of two sides (buyers and sellers), buyers represent demand while sellers represent supply. Inflation is largely driven by the relationship between aggregate demand and supply in the economy. If demand overly exceeds supply then you have inflationary tendencies, if supply exceeds demand you have deflation, which is less common but a bigger problem than inflation.

Printing money isn’t directly the issue as if a Government prints money and hides it somewhere in a vault without spending it then it will have no ripple effect. The challenge starts when the government starts to spend printed money, as doing this will increase the total money supply in the economy, and without an attendant increase in productivity (ability for the economy to generate supply), prices will go up.

For example, you use printed money to pay salaries say to increase salaries from 30k minimum wage to 50k. That additional money in people’s pockets is going to be spent on goods. The biggest part of the inflation index here in Nigeria is the Consumer Price Index (which basically tracks the prices of a select number of staple foods that ppl normally buy like rice, beans etc.) In Nigeria, about 60% - 70% of income is spent on food and consumables according to the NBS (I don’t recall the specific figure but it’s higher than 50%).

The suppliers of these goods will see an increase in demand and because they have the same number of goods for sale, they will increase prices to respond to the increased demand in the market. This increase in prices at an aggregate level is what is termed as inflation.

Hope this helps?

God
Some ppl go school oo

We Still get brains for this country
Thank God

Fathai:
yes you can use it for import payment.

o

You can use naira to pay for goods imported from USA or Europe? Please educate me more.

Mazikic:
Hahahahahaha!!! print money kwa?! Money is just paper!. The real wealth of a country is the value of the the goods and services it produces. If you don't increase your productivity and go ahead to print more money, you'll end up having too much money chasing few products(demand-pulled inflation). The situation might degenerate to hyper-inflation where one loaf of bread will go for as high as 100k! lolz

The OP go don learn enough..

majamajic:
U will have inflation

Exactly...it also devalues the prices of commodities and services

24SEVEN:



The OP go don learn enough..

. Exactly what happened in Zimbabwe, a loaf of bread at the time was going for 15k in our own currency..

[quote author=cruxgemmata post=91226213]

U wey be pro for Copy and paste. How u wan tek remember coconut head I no blame you

Firstly, a country's economy is being run like a business. Inflation, debt, depreciation are what determines the country's economy. For you to understand money, first you must know money is just an illusion, it isn't real at all, just keep reading I will explain why.
But first why is naira loosing against dollars? Printing more money is not the major cause of inflation actually.
When a country is in debt, let say Nigeria is owing USA $50billion dollars and they are unable to pay, how then will USA get back their money back? they get back their money by devaluing our currency. For those that don't understand, let us say your neighbor who you buy sachet milk at the rate of #50 naira is owing you 500, and he is unable to pay the money, so you strike a deal to buy that same milk at #30 naira till your neighbor's debt is paid. the milk didn't loose its value, but the Neighbour's selling power that was lost.. That is why a country rich as Nigeria is poor. As the exchange rate of a country increase, if the country solely depends on foreign goods, then the prices of the commodities will increase so also the prices of domestic commodities follow suite including labour.

Secondly, money like I said is an illusion, it isn't stable. The wealth of a nation is not in its money but in it is its resources, selling power and purchasing power and wealth is gotten from the ground(oil, coal, minerals, agricultural raw materials e.t.c.) A country without wealth has nothing to sell or trade with, will become poor. A country that spends more than it earns will go into debt (common economics). For you to increase the value of your currency, increase your production(converting wealth to useful consumables), increase your science and technology.
Do not keep your money in the bank, it will loose value, money(illusion) isn't stable including dollars. Spend money, so you can make more money. Set your money on motion, money when it is on motion is a magnet that pulls more money.
If you get #10million for account buy 3 cars and use it for uber, sit down in your house and let this drivers be submitting money to you every month. If it is in your bank, it won't do you any good. Bye

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Have learnt more today.

Thank the Op for bringing this topic to the fore

You can only wish it was possible

ContractKiller:
I've heard university graduates ask similar questions.

I honestly dont know how to respond to that. Its surprising. What sort of gist did he gist through out his undergraduate days that national income didnt come up.

ContractKiller:
Honestly there are fools on this forum.

By their mórónic questions you shall know them.

Edit:

[img]https://images./3b611SCxvndHkMGgsHpJ1N.jpg[/img]

Just see the way you're embarrassing yourself.

Only Americans can print money because they are the rulers of the world, for now. All other currencies are based on the dollar.

Being just painted paper, a cowry shell is more expensive than the dollar in value. We might just go back to using cowry shells very soon...

I used to think of that when I was still very young tho.

selemempe:
Only dollars, euro and yen can be printed like that because they are traded currencies. Those poor countries have currencies of no value outside their country. They can't print money

Modified

You can print money if your currency itself is demanded for transactions abroad. That is why u.s and Europeans have gone far. They can afford to print their money and spend it abroad...not in their own country.

So if u.s needs to buy oil from Nigeria...it can print the money and buy the oil and that way, they keep their economy alive. That is neo colonialism

That's how great nations do

what if buhari decide to print money for his own personal use

humilitypays:
That's how great nations do

Oga no it won't work. America will also end up like Zimbabwe if they do so. Printing of money needs to be balanced with their income.
Let's say america income is $150 billion per annum and they went ahead to print $11trillion that year, there will be too much money in circulation, thereby increasing demand, leading to hyper inflation and this of course will cause other country's of the world to have insanely huge amount of dollars in their reserve, automatically country's of the world will have surplus dollars in their reserve leading to the devaluation of dollars.
So in order to check this, they are very careful in printing more money and more serious in devaluing other currency to increase it's value. Spending the dollar in other country is worse self. America dey vex because yahoo guys are collecting their dollars and spending it in Naija, increasing our country dollar reserve. That is why yahoo guys have light sentence and SARS are just extorting money from them. Seriously Nigeria no want yahoo to end o.

So because you are in power, you can't do anything you like, you maintain order.

humilitypays:
That's how great nations do

yes. Before it can work for you, you need to be a production power house. People need to be at your ports daily exporting goods to their country and converting their various currencies to yours.
If for instance west Africa was a country with one currency and strong manufacturing companies, we can dominate Africa like that and print our Eco to use to buy raw materials from African countries.

oglalasioux:
o

You can use naira to pay for goods imported from USA or Europe? Please educate me more.

deposit the cash into your Nigeria bank account, fund your PayPal, Payoneer account. etc..buy things online, through AliExpress, Amazon and the rest.

Fathai:
deposit the cash into your Nigeria bank account, fund your PayPal, Payoneer account. etc..buy things online, through AliExpress, Amazon and the rest.

Chai!

So you think PayPal and the rest accept your naira?

Get educated here:

Your bank pays them with dollars through the CBN and bills you heavily. Go to Dubai. You can use your Nigerian ATM card and withdraw dirhams. But check your alert later and see how your bank will bill you because of the international transaction.

Tinkulala:
In 2008,the then President of Zimbabwe decided to print money as a solution to his countries economic and financial woes.

He was ill advised by his economic team. So he instructed the Central Bank Governor to print money and flood the country with excessive cash.

Here is what happened afterwards:
https://www.youtube.com/watch?v=RnVQXWxKE8s

further read up on fiat currency, German hyperinflation in the early 1920s, venezuelan economic crisis, the federal reserve, the greek economic crisis of 2009, the gold standard. etc

Are you an unemployed graduate or did you just retire from paid employment and you are aspiring to own a business? If you answer yes, I advice you to invest in snail farming and turn your backyard garden to snail haven. I knew that backyard snail breeding can take many people out of unemployment..

shilenji:
Example of a country like that is Zimbabwe They use like a truck of cash to buy a tin of milk.



In mr omar's voice~ TRAGIC!

Everybody hate chris

Only if you can print original Dollars ( almost impossible)...alleged North Korean style.

Dollars can be used to import whatever goods and services you need to stimulate your economy back to life