CondemnBattery:
Dumb question

RZArecta:
you're not a financial analyst oga, stop lying and even if you insist you are then you're obviously very terrible at your job and I'll advise every sane person to run away from you

CondemnBattery:
Dumb question

PNomsule:
I am really just curious as to "why can't we just print more money and solve the poverty problem in the country?"

Terms like "inflation" and the "devaluing of the naira" are the usual buzz answers to that question. Also, people give the example that if we were to print more money and just give everyone N5,000,000 for example, then everyone would go out and buy things, thus making "THINGS" more scarce and in short supply and hence driving up the prices of things (simple demand/supply economics). But herein lies the catch for me... With TRUE unemployment rate somewhere around 33% in the country, if DEMAND for "THINGS" rose, then I would think that companies would WANT to hire more people and build more processing plants to keep up with demand and raise their profits. So, the influx of cash (printed money) would seem to solve the unemployment problem.

Again, we have agencies that regulates pricing in the economy: PPPRA, Price Control Board (Ministry of Commerce) etc, with those, can't the likely over pricing of commodities (THINGS) be controlled and gazetted to avoid the story of "too much money chasing fewer goods"?

In the final analysis, a robust and health competitive economy would have been created and underemployment issues largely solved.

Economists and Analysts lets discuss?

GloriousGbola:
google 1920s hyperinflation

also zimbabwe inflation


when you have a limited supply of goods and you increase the supply of money - you get inflation. this is why most of these wage increases being demanded ony lead to increased prices in the long run - because it is more money chasing fewer goods.

it should be noted though, that during covid 19, western govts printed money - but the west has never had a shortage of goods

Sucre6:
As an economist let me make this as clear as possible in lay man terms

Printing more money will lead to what is called money illusion when huge amount of money is chasing little amount of goods/services.

Printing more money will make the money valueless, which will plunge the country into deep stagflation, which is high unemployment and inflation join together.

Countries that their money has money value than ours would not invest in the economy.

Prices of things will skyrocket like mad, imagine having ten million naira and a price of big loaf of bread is one million naira, u end up spending ten million naira just to feed for 3 days.

With the ridiculous way the value of the money would be the country can't even import anything which will lead to more poverty, even the so call rich men and women would eventually run out of money to spend.

It's a scary situation, during covid 19, tinubu suggested that government should just print more money, I read the news and laughed at his nonchalant statement, which clearly shows that he understands nothing in money generation or managing the resources of the nation, reason why I will vote for Peter obi, not out of sentiment but out of the fact that he understands the uniqueness of Nigeria situation and knows how to economically tackle it.

A305:
In this life; there are some forces you can't control.

Think of: The force of gravity, The speed of light, The doppler effect of soundwave so also, The forces of demand and supply in economics.

Price control mechanism will only work in a socialism or communism economy NOT a capitalist economy where everything is geared towards profit making.

It can also work when a cartel of buyers tends to make it work — this is a scenario whereby the G7 are recently talking about putting price cap on Russia oil but sadly it will never work because Russia will decide not to sell to them and instead move their market to Asia and East Asia.


Why?

The forces of demand and supply can hardly be influenced.

PNomsule:
I am really just curious as to "why can't we just print more money and solve the poverty problem in the country?"

Terms like "inflation" and the "devaluing of the naira" are the usual buzz answers to that question. Also, people give the example that if we were to print more money and just give everyone N5,000,000 for example, then everyone would go out and buy things, thus making "THINGS" more scarce and in short supply and hence driving up the prices of things (simple demand/supply economics). But herein lies the catch for me... With TRUE unemployment rate somewhere around 33% in the country, if DEMAND for "THINGS" rose, then I would think that companies would WANT to hire more people and build more processing plants to keep up with demand and raise their profits. So, the influx of cash (printed money) would seem to solve the unemployment problem.

Again, we have agencies that regulates pricing in the economy: PPPRA, Price Control Board (Ministry of Commerce) etc, with those, can't the likely over pricing of commodities (THINGS) be controlled and gazetted to avoid the story of "too much money chasing fewer goods"?

In the final analysis, a robust and health competitive economy would have been created and underemployment issues largely solved.

Economists and Analysts lets discuss?

PNomsule:
I am really just curious as to "why can't we just print more money and solve the poverty problem in the country?"

Terms like "inflation" and the "devaluing of the naira" are the usual buzz answers to that question. Also, people give the example that if we were to print more money and just give everyone N5,000,000 for example, then everyone would go out and buy things, thus making "THINGS" more scarce and in short supply and hence driving up the prices of things (simple demand/supply economics). But herein lies the catch for me... With TRUE unemployment rate somewhere around 33% in the country, if DEMAND for "THINGS" rose, then I would think that companies would WANT to hire more people and build more processing plants to keep up with demand and raise their profits. So, the influx of cash (printed money) would seem to solve the unemployment problem.

Again, we have agencies that regulates pricing in the economy: PPPRA, Price Control Board (Ministry of Commerce) etc, with those, can't the likely over pricing of commodities (THINGS) be controlled and gazetted to avoid the story of "too much money chasing fewer goods"?

In the final analysis, a robust and health competitive economy would have been created and underemployment issues largely solved.

Economists and Analysts lets discuss?

kamalbob:


Easy to say if you don't know how money or printing in general works. As an expert in printing (academically) let me wrap it up in a short note. Money are printed on gramage paper which cost a lot, also the security prints on those papers before the actual print is done also cost huge amount of money.

So in a nutshell, you have to spend money to print money. If not because of this obstruction, those greedy politicians will print money like tomorrow no dey I'm telling you

PNomsule:
I am really just curious as to "why can't we just print more money and solve the poverty problem in the country?"

Terms like "inflation" and the "devaluing of the naira" are the usual buzz answers to that question. Also, people give the example that if we were to print more money and just give everyone N5,000,000 for example, then everyone would go out and buy things, thus making "THINGS" more scarce and in short supply and hence driving up the prices of things (simple demand/supply economics). But herein lies the catch for me... With TRUE unemployment rate somewhere around 33% in the country, if DEMAND for "THINGS" rose, then I would think that companies would WANT to hire more people and build more processing plants to keep up with demand and raise their profits. So, the influx of cash (printed money) would seem to solve the unemployment problem.

Again, we have agencies that regulates pricing in the economy: PPPRA, Price Control Board (Ministry of Commerce) etc, with those, can't the likely over pricing of commodities (THINGS) be controlled and gazetted to avoid the story of "too much money chasing fewer goods"?

In the final analysis, a robust and health competitive economy would have been created and underemployment issues largely solved.

Economists and Analysts lets discuss?

PNomsule:
I am really just curious as to "why can't we just print more money and solve the poverty problem in the country?"

Terms like "inflation" and the "devaluing of the naira" are the usual buzz answers to that question. Also, people give the example that if we were to print more money and just give everyone N5,000,000 for example, then everyone would go out and buy things, thus making "THINGS" more scarce and in short supply and hence driving up the prices of things (simple demand/supply economics). But herein lies the catch for me... With TRUE unemployment rate somewhere around 33% in the country, if DEMAND for "THINGS" rose, then I would think that companies would WANT to hire more people and build more processing plants to keep up with demand and raise their profits. So, the influx of cash (printed money) would seem to solve the unemployment problem.

Again, we have agencies that regulates pricing in the economy: PPPRA, Price Control Board (Ministry of Commerce) etc, with those, can't the likely over pricing of commodities (THINGS) be controlled and gazetted to avoid the story of "too much money chasing fewer goods"?

In the final analysis, a robust and health competitive economy would have been created and underemployment issues largely solved.

Economists and Analysts lets discuss?

Taigaban:
First, agricultural production is key to unemployment and underemployment. Agriculture is the only sector that can engage 90% of able body men and women. No sane economy will print money to solve economic problems. Rather you invest money in viable sectors to earn revenue.

Sucre6:


You see, it's a vicious cycle, take for example, when more people are employed, they will be paid right, what is the value of working when u know that the money you will be paid won't be enough to buy you food to eat not to talk of clothing and luxury, it gets to a point when the money becomes so valueless that there will be no need to work, a case study is Zimbabwe.

When there is stagflation, prices can't be controlled because an individual could monopolies the market take for example, when dangote refinery is ready, he would be a sole producer of oil in Nigeria, when when stagflation sets in, you can't control or regulate how he sales his product because the whole country is dependent on him for survival, it's will be wild like going back to stone ages.
Now this is a practical example

Take for instance if our normal exchange rate is maybe #1,000 to 1$ dollar and a crude of oil is sold at #100,000 these foreign countries would have to exchange $10 dollars just to acquire one barrel of oil, but when stagflation sets in, exchange rate would be crazy, say N100,000 for $1 dollar and a barrel of oil is sold at 100,000 to foreign export for example, when stagflation sets in and the naira looses it value, you could buy 10 barrels of oil for $1 dollar

These illustration above means, the value of money that the foreign countries pays for 1 barrel of oil when the economy was good, same amount of money would buy 10 barrels of oil when the economy becomes bad thereby plunging the economy into deeper hyper inflation, most countries wont even buy from Nigeria then, to avoid importing inflation to their country, yes a country could be plunge into inflation by importation from inflation Country.


The solution to solving these, The CBN introduces monetary and fiscal policy

Which include Open Market operation, sales of bonds and securities and so on, they do this to rake in excess money in circulation, and when this is continued the money in the economy would be just fine to run the economy. The extreme measures is devaluation of the face value of the currency,

So that's it, hope it's clearer now?

PNomsule:


I fancy the points you noted however, from the post I made, how do you see the aspect of Price Control Mechanism as a critical vehicle to combat and stiffle inflation before it rears its ugly head, say on bread for example?