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Nairaland Forum / Nairaland / General / Education / Why Do Nigeria Borrow Money Whereby They Can Prints More Money. (8162 Views)
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Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by Idamond: 3:39pm On Apr 11, 2021 |
Why does a country who prints her own money still borrows from other countries. economists in the house please help.? 1 Like |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by habsydiamond(m): 3:43pm On Apr 11, 2021 |
It doesn't work that way mehn....it's not about printing money... It's about whats going on with the economy... Value have a major role to play here. If ur economy is flamboyant enough I don't think there will be need to borrow money from other countries. The problem lies with those at the top of affairs in this country.. When they keep stealing funds and saving these funds aboard, developing other countries instead of ours... That s one of the reason why we are still where we are since the 60s... If e shock u sorry oo 9 Likes 2 Shares |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by youngsahito(m): 3:45pm On Apr 11, 2021 |
you need money to print more money. 3 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by Kriss216: 3:57pm On Apr 11, 2021 |
youngsahito:So, we need to borrow 1 trillion Chinese yuan in order to print how much Ogbomoso economist! 35 Likes 1 Share |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by Cutehector(m): 4:02pm On Apr 11, 2021 |
Its not about minting money. |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by LeeSantos(m): 4:15pm On Apr 11, 2021 |
they've been printing more money. you never knew. but printing more money has it prons and cons. https://www.nairaland.com/6500896/nigeria-printing-more-money-could 1 Like |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by oz4real83(m): 5:05pm On Apr 11, 2021 |
Do u still remember what they taught u in school as one of the characteristics of money that "it must be relatively scarce"?. If u keep on printing money, it becomes so common and loses that basic characteristic of money. That is why inflation is also defined as too much money in circulation but little purchasing power" 44 Likes 6 Shares |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by SamuelLoch: 5:08pm On Apr 11, 2021 |
Idamond: Good question! In simple terms, it is economically wrong for a nation to "continuously" print the money needed to settle her expenses. The amount of money that circulates in an economy matters to the nation's value of money, currency strength and foreign exchange. Too much money in circulation would reduce the value of money and spike inflation. Imagine buying your regular mid-size bread of N200 for N1,000 or more... Another reason why a government can't print money to fund projects is because there's a high tendency that the project won't grow to the implementation phase. A government that borrows money is given conditions and is usually monitored to execute the proposal to which the money was borrowed. youngsahito: This is so untrue! Skyfornia: There's a difference between printing money, and borrowing money to settle government expenses. In simple terms, the difference is in the books of accounts - it's beyond this simple explanation. If you have N100k, and you are gifted -print-N50k, your balance grows to N150k, which means you have more money to lavish, but if instead, you borrowed the N50k (with 0% interest), well, your worth increases to N150k, but is debited in another book of account with the N50k. So your real balance is N100k. Do you understand the logic? 7 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by gaddafe(m): 5:21pm On Apr 11, 2021 |
I won't be surprised if the OP is one of those who kept shouting "Economics is a useless subject" while in school. Today who is now useless? 34 Likes 2 Shares |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by OGWILLS123: 6:11pm On Apr 11, 2021 |
That's why they banned crypto |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by Malawian(m): 6:37pm On Apr 11, 2021 |
habsydiamond:This is not answer to the question asked. If you can print your own money, why borrow from others at an interest? 7 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by rookidmart: 6:38pm On Apr 11, 2021 |
Malawian:Because the value of your currency will decline rapidly if you choose to print more of your currency willy nilly. See: Zimbabwe, Venezuela, Germany after world war 1. 4 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by Malawian(m): 6:44pm On Apr 11, 2021 |
rookidmart:How different is that to borrowing money? 4 Likes 1 Share |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by damosade(m): 6:52pm On Apr 11, 2021 |
You are a science student ba? I used to think the same until I got to know so many things about economy. 5 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by kkash: 6:55pm On Apr 11, 2021 |
oz4real83: I understand this well, does it mean that scarcity of money would bring down the prices of goods and services Of a nation?? |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by Nobody: 7:09pm On Apr 11, 2021 |
The fear of hyperinflation wouldn't make that easy. The more we print, the costlier the goods. You can search Google for more comprehensive info. Kriss216: 1 Like
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Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by oz4real83(m): 7:10pm On Apr 11, 2021 |
kkash:yes, to some extent. If prices are high and no demand because of scarcity of money, producers will be forced to bring down prices, especially for perishable goods. This happens for a normal goods. You will find out that things are cheaper in the evening than in the day. 2 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by fernandoc(m): 7:24pm On Apr 11, 2021 |
School na scam, school na scam! Now look at the kind of useless question a full grown man is asking. 6 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by Skyfornia(m): 7:28pm On Apr 11, 2021 |
Not satisfied with all the answers...why is this hard to explain? Where are the economists?? Please come and educate us like we are kids. Just like the OP asked...if Nigerian government decides to print money to execute some projects like railway, 2nd niger bridge etc instead of borrowing money from another country ..how would that cause inflation?? Note: Whether the amount is borrowed or printed...it will still get into people's hands. So why saying there will be too much circulation of money?? Is the borrowed money when used, not going to circulate?? 15 Likes 1 Share |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by HONESTFACT101(m): 7:32pm On Apr 11, 2021 |
Google Venezuela so OP you want to carry barrow of money to buy bread |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by PissfulProtester: 7:33pm On Apr 11, 2021 |
habsydiamond:long talk. You haven't answered the OPs question 4 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by Brayss(m): 7:37pm On Apr 11, 2021 |
Kriss216:Lmao |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by rookidmart: 7:44pm On Apr 11, 2021 |
Malawian:I don't think Nigeria borrows naira from the IMF or any other country it borrows money from. Also if it is borrowed, it has to be paid back - usually with interest- so it will still leave eventually. Not so with printed money. 1 Like |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by kkash: 7:48pm On Apr 11, 2021 |
oz4real83: Thanks alot.... Wld this have a positive impact on a nation??... would the value of the currency increase? |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by oz4real83(m): 7:52pm On Apr 11, 2021 |
kkash:on aggregate,it does but it will create another problem which is called deflation. That is why countries have central banks which used monetary policies to check the problem. When there is inflation, the CBN withdraws excess money from circulation. When there is deflation, they pump more money into circulation. There is supposed to be a balance of both. 1 Like |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by kkash: 7:58pm On Apr 11, 2021 |
oz4real83: Okay, Thanks alot... So the value of goods and services should be equivalent to the value of the currency in circulation.... An increase or decrease wld lead to inflation or deflation.... 1 Like |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by kkash: 8:01pm On Apr 11, 2021 |
Skyfornia: I think, the borrowed money wld have to be paid back someday, so it wld be taken out of circulation, buh printed money wont be paid back to anyone, so its gon remain in circulation 4 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by amrichy(m): 8:12pm On Apr 11, 2021 |
rookidmart:try to explain clearly and logically how printing more money will result in a rapid decline in the value of the currency. if the government prints 5 trillion naira for instance and spend this money on infrastructure, agriculture, education and job creation, how will this cause the value of our currency to drop? 2 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by amrichy(m): 8:14pm On Apr 11, 2021 |
Cutehector:tell us what it's about then. |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by oz4real83(m): 8:23pm On Apr 11, 2021 |
kkash:not equal but a balance. The quantity of salt u put in your food is not equal to the quantity of food. A little salt can balance the quantity of food even though both quantities are not equal. 2 Likes |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by anslemarinze52(m): 8:23pm On Apr 11, 2021 |
gaddafe:lol funny you |
Re: Why Do Nigeria Borrow Money Whereby They Can Prints More Money. by Idamond: 8:26pm On Apr 11, 2021 |
amrichy: I seriously enjoy these ur point. for ex why not print enough money and let it be restricted from people. just use the money for infrastructure, agriculture, education and so on that would benefit us in future. 1 Like |
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