FacilitatorLekk:
Economy is continuous, some of those money will be given to business men and investors to put into production activity, as long as we can use our money and produce things and into investment we are good, it will balance out and expand the economy. It doesn't mean all the money withdrawn from CBN will be consumed, some will go into investment ventures and businesses via loans, to create more value for the economy.
We must endeavor to export more as well, earn from other nations, but importantly, we must buy and use what we produce, to maintain our wealth and build it. You are looking at it from a narrow perspective.

Ofemmanu1:


Shut ya fckking gutter..
yes ...
Lagos economy is growing. It is now over $100 billion
That is double what it was 10 years ago
Can you tell us how many countries in the world have achieved that?
your premise that they have lexy2014 been unable to drive growth is untrue
It's only two months fa!

FacilitatorLekk:

Economics is more complex than alcohol and alcoholics.

InvertedHammer:

/

There is nothing complicated about Economics.

Common sense Economics still beats textbook Economics. Your father may be a better Economist without degree than Emefile but academic degree is what's intimidating you. The reason they plot Demand and Supply graph is to make it seem more complicated than it is. A market woman in Osogbo understands the principles without fancy graphs. Do you ever wonder why professors in Economics are not the wealthiest in the world?


That's why the Economics you study in school is about how those with common sense solved their challenges. They may use jargons to confuse and intimidate amateurs like you.

/

Blue3k:


Increasing the money supply without an aggregate increase in the supply of goods results in price levels going up. Since the amount of production didn't increase at the same rate the cost of goods go up. The graph shows how increasing money supple increases inflation in one scenario.

Assuming the economy is 100 apples and they are all 1 naira. The economy is 100 naira or apples. Assuming the money supple increased 16% the there's now 116 naira and still 100 apples in this example. The price inflation rate is 16%. You not wealthier because you still have 100 apples. Money has utility becsuse ut buys goods and services. Do you get how adding money effects inflation?

Seun:
Dear Nairalanders,

I regret to inform you that the Central Bank of Nigeria printed an alarming quantity of money electronically in June 2023 (source).

They increased the supply of narrow money aka M1 - which includes cash and money in bank accounts that can be spent immediately, from ₦22.47 trillion to ₦24.49 trillion, which means they printed ₦2.03 trillion, increasing the narrow money supply by a whopping 9.03% in one month - June. 🙆‍♂️

They increased the supply of broad money M3, which includes all money in the country, from ₦55.8 trillion to ₦64.9 trillion, which means they printed ₦9.1 trillion naira, increasing broad money supply by 16.31%, in one month. In other words, what they printed in June is 16.31% of all the money that the CBN had printed since independence. 🙆‍♂️

What does this mean? According to the CBN itself, "there is excess money supply when the amount of money in circulation is higher than the level of total output of the economy. When money supply exceeds the level the economy can efficiently absorb, it dislodges the stability of the price system, leading to inflation or higher prices of goods."

It also impacts the exchange rate; when more of a currency is printed, each unit of the currency becomes less valuable. A source I spoke to said that he suspects that the government has borrowed more money from the CBN. Trillions of naira. Inflation is 📈, naira is 📉.

lexy2014:


Bro, how does having 116naira in the economy and 100apples in the economy now cause inflation?

Blue3k:


Lol you'll never get it. I guess economics is for everyone.

nairalanda1:


He will soon ask you the question again...

lexy2014:


I do get it. It's u am not sure who has gotten it because u are just repeating the "what" without explaining the "how".

If u have gotten it, then u should have no problems explaining how 116 naira and 100apples cause inflation.

It's your analogy. Why can't you explain it further?

Blue3k:



You were right. He's trolling because it's hard to believe anyone is this slow.

Blue3k:


You were right. He's trolling because it's hard to believe anyone is this slow.



Keep lying to yourself. The explanation is sufficient since you say you get it. If you disagree tell me your disagreement.

lexy2014:


If I ask you, what has trolling got to do with d questions I asked you, will u be able to answer d question?

You claimed that 116naira and 100apples in the economy automatically causes inflation. That is the "what".

My question is simple...how does 116naira and 100 apples in an economy cause inflation? For someone who is an expert in economics, u shouldn't have any problems dissecting d question

nairalanda1:


I have been his target before. I know his game well.

Best way to deal with him is not to play.

Blue3k:


Do you disagree with the statement increasing money supply intensifies aka increases inflation? If so tell us why.

lexy2014:


You haven't finished your homework.

Pls which jobs, investments and price reductions have accrued to Nigeria as a result of removal of subsidy on kerosene and diesel?

How would subsisdy have eaten out revenue?

Before previous governments started removing subsisdy, what was the percentage on each litre of fuel they were paying as subsidy?

With each subsequent removal, what percentage on a litre of fuel was being paid as subsisdy and what did that amount to in total?

Which subsidy did Mele Kyari say was totally removed in 2020? If subsidy was completely removed in 2020, which one is Tinubu removing in 2023?

Which subsisdy on petrol did Tinubu now remove in 2023?

What percentage on each litre of fuel was nigeria paying as subsisdy before may 29, 2023?

lexy2014:


You haven't finished your homework.

Pls which jobs, investments and price reductions have accrued to Nigeria as a result of removal of subsidy on kerosene and diesel?

How would subsisdy have eaten out revenue?

Before previous governments started removing subsisdy, what was the percentage on each litre of fuel they were paying as subsidy?

With each subsequent removal, what percentage on a litre of fuel was being paid as subsisdy and what did that amount to in total?

Which subsidy did Mele Kyari say was totally removed in 2020? If subsidy was completely removed in 2020, which one is Tinubu removing in 2023?

Which subsisdy on petrol did Tinubu now remove in 2023?

What percentage on each litre of fuel was nigeria paying as subsisdy before may 29, 2023?

erniok thatigboman greggng a4cube lasenior bonnyhope semperfid nasri100 kukutenla slowice advanceDNA...see the way nairalanda1 will dodge these questions

Blue3k:


Why are you changing the subject? Why do you only ask questions and instead of answering direct questions. Do you believe increasing money supply doesn't cause inflation? If so tell us why. It's OK to disagree tell us your thoughts.

slawomir:
Tinubu's administration is a disaster

Dottore:
Today the exchange rate is 1USD to 834 Naira. This is the weakest since the history of Nigeria and it's seems to be degenerating irredeemably.
Most Petrol Stations are in Panic Mode because of speculations hence they are suspending sales. The few ones that are selling are now selling from 600 Naira and above per litre.
My heartfelt empathy to fixed and meagre salary earners especially couples.
This is barely 2 months after handover and Nigerians have started missing Buhari who clearly had nothing to offer. Now oga BAT is here with full package just under 2 months even the blind are seeing. My humble advise, fasten your seat belts we have just 3 years and 10months to decide except God intervenes.
It's really interesting to see that everyone is witnessing this both the people that campaigned and voted for the incumbent and the people that voted against them.

lexy2014:


My agreement or disagreement isn't responsible for your claim that increasing money supply intensifies aka increases inflation.

If that is your claim, how does increasing money supply intensifies aka increases inflation?

PlayMaker14:
When you employ an incompetent daft unintelligent fellow at the helms of affairs because he speaks the same language with you, “REGRETS” will be the order of the day.


This is just Verse 1.

Blue3k:


You saw 100 turn to 116 over a year. The new price of the apples turned N1.16 in my example instead of 1N before the money supply increased. What more do you need?