₦airaland Forum

steveodo:
It will interest you to know that the amount paid for production of 1000 note is more than 1000. For instance it may take a country 1100 to print a thousand note of her currency. It's called seigniorage

emmaodet:
Let me come from the angle of price control.
Let’s assume you give all citizens 5m each and price control for all goods are activated. It will take like 10,000 Nigerians holding 5m each to buy up most lands in nigeria at the rate of 500k per plot assuming price is controlled.
What happens to the millions of people left? Who have 5m at hand and also wishes to have Atleast a plot?
Corruption sets in. Bribing, lobbying starts which results in more money chasing fewer goods …..inflation.
If it is not bread, it will be car, bags of rice and palm oil, Garri etc

Allisgud:
Come to think of it,money is just a paper beatufy in an expensive chemical paint,because of this same money we work for 30 days,what this op posted is reasonable if only u can think deeply,let's pretend dollar does not exist,one of the reason we have food shortage that lead to hike in little ones remaining was because of insecurity,what if more money is printed to pay more manpower produce more locally weapon,with this terrorist will be erase more farmers will be employed that means more produce food will be surplus for export with this we will have more forex our naira will have value

SeaTrade:
I saw that too,no out of the box thinking.
Just regurgitating things you already stated and claiming analyst.
Pathetic!

Melonny:
We are still new to it. This is the reason I want continuity of Govt. I believe Buhari may not have done badly in this aspect. Getting someone else will stop all these, we have suffered for 7 years for this, and defeating terrorism will further help us to grow agriculture. Once we can sustain ourselves, prices of products will drop.
For Innoson, I believe they only assemble here.. The main materials are bought from overseas.. The cars are too costly

Taigaban:
The answer is no, because the cost of printing money is higher than it value. For example you could need like 7million naira to print 5million Naira. So we should use available resources to produce agricultural products for exports to earn foreign currency which will boost the economy and strengthened the Naira. The empty brains who makes up the 'presidency cabal do not have any slight idea of this. We can produce rice to feed the entire west Africa. Imagine China produces Rice in excess.

DJperdurabo:
It just baffles me the way the average Nigerian thinks as evidenced by the way folks relate, react and postulate ideas on Nairaland.

Someone sat down, exercised his intellectual capacity to think about the various economic issues bedeviling the country and was wondering why a particular theory he believes could work wasn't adopted. Now that man is a THINKER, A SOLUTION PROVIDER.

Considering the fact he understands he may not know all the aspects, twists and turns and implication of his solution, he has come here to Nairaland (a forum fast losing its relevance due to the preponderance of folks like you quoted) to sound out his opinion and hear what other "intellectuals" and "subject experts" he believes resides in the building have to say.

Rather than comment ON the topic intellectually or keep mum if they have nothing to say and LEARN, these children of perdition will always seek to attack the poster, question his sanity, insult his person, his gender, ethnicity,beliefs etc and TOTALLY ignore what the poster was about.

These are the people you say should lead the country, these are your so-called youth who want to wrest power from the current thrives we have as politicians. Let's pray we don't substitute a GREATER evil for a lesser one when folks exemplified by the one you quoted come to positions of power and authority. If Nairaland is to be the measure of how prepared the Nigerian youth is for power and responsibility, then the country is DOOMED!!!

Thanks for your feedback to he/she that posted thinking they know something whereas s/he wallows in repugnant ignorance.

jumper524:
funny enough many people think playing by the rules is what strives the economy. Top European countries don't play by the book.

Mrsoft3:
You can not print money above your asset

Melonny:
Printing more money will not solve the problem. In fact, prices will continue to increase. Let's analyse the cause of Nigeria's inflation. I know sure two things contributed to this..
1) We are too import dependent, we import literally everything. Some days ago, I saw a term on Twitter and I decided to read more about this - Import substitution industrialisation (ISI). ISI is generally stopping the importation of the products we can produce, produce in-house, sustain ourselves and export. To a very large extent, this is the policy Buhari Govt has adopted.
Under ISI, the country looks to more exportation cheaper and importation more expensive. For example, you will see that the Govt shut down the land borders, the devalue the Naira. When you devalue a currency, it is weakened compared to other currencies, someone in the USA may be able to buy a product in Nigeria at a cheap price because Naira is weak. Devaluing the Naira makes us more competitive globally. With this, we can start exporting our product.
Going back to my point, with the Govt frustrating all efforts buy foreign goods, devaluing the Naira in an attempt to stop importation, importing any product is now very expensive because of the weakened Naira. Since we don't produce many of the things we consume in-house.

waice6571:
This is against everything common sense stands for! Money is only useful when you create value for it.
Zimbabwe experimented this option some years back and their currency became a joke without economic value.
They have single note of 1million Zimbabwean dollar that is not enough to buy a wheelbarrow.

womenareapezz:
print more money so that your currency will be like that of Zimbabwe own, whereby you will be buying bread at 1 million naira

Dey use sense sometimes dey think !
At least history for suppose don give you small sense na

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.

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

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

CondemnBattery:
Dumb question

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.

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

justicechichex:
Nice topic OP. Financial analysts, economists oya food don land oh. Mods fp please.

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:
Not technically the best option to solve inflation and it would cause more inflation because there would be too much money in circulation chasing fewer goods. This tends to weaken the value of the currency till one loaf of bread could be sold for one million, a text book example of what happened in Zimbabwe some years back.

Zimbabwe kept printing more money to cushion inflation and kept introducing new currency face value until they had one million note face value. It ended in chaos, poverty and protest for a regime change.

So, what you should understand is money management is key factor to stimulating and running the country's economy, when you ruin that by printing more money, you tend to ruin the country itself.

What CBN does to tackle inflation is raise interest rates to discourage banks from lending out the money that creates new money in the system. As every loan in the system creates new money.

Willy7:
I've read this line before, hope they are not trying to make it seem logical or point of discussion? BTW who is the writer supporting in this election? It will enable me draw conclusion. The point raised sounds familiar. Lolz

ItisHi:
Racheal mgbeke feeling funky

okunwaye:
How e be you for eye now

okunwaye:
My game never finish remain psg and porto

WeLive:
I know... his girlfriend case
But as the case is still in court, let him be given time to play, even if it is limited

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