₦airaland Forum

iamyemiakins:
Chizzy na error for tasks

steveodo:
Seigniorage is the difference between the face value of money, such as a $10 bill or a quarter coin, and the cost to produce it. Seigniorage can be negative or positive, it's currently negative as the cost of production is higher than face value.

PNomsule:
Giveaway sure me die today after Man u do the needful today

PHIPEX:
Price control does not work in a capitalist economy

tefishy:
Man United should do the needful. No joy in premier league

highness25:
Amaechi that couldn't keep his house in order in Rivers APC abi which one?

djon78:
All the financial transactions in the world revolves around the US dollars.

Before the second world war gold was the the Central underlying hedge for every monetary value but after the war the US took control of everything global about money

That's why countries foreign reserves are in the dollars

Countries cannot print money not covered by their foreign reserve.
Inflation, drop in currency values will batter the country in questions

CBN already printed 20trillion and flooded the country. That's why inflation and rapid devaluation of Naira has occurred


What Nigeria needed was firstly improvement of critical infrastructures especially power, roads etc
Power alone will help Nigeria a lot to industrialize

Industrlization will help Nigeria move from import dependent country to at least produce what we use before exporting.

Ordinary crude oil we don't produce here. And many other critical issues

Changing Nigeriyas economic outlook is not a rocket science but we have had non truthful leaders that don't want change

They want status quo to remain the same, because change will render many of them useless.

That's why Nigeria's economic policy is still dated back to the 1980s.

Effective Leadership must be put in place because a point will come Nigeria will be irredeemable.

Other nations are rapidly progressing and advancing. While Nigeria is still stuck in retrogression

The only positives are only the hardworking attitude of ordinary citizens from music to nollywood to few serious organizations, including the youths

miketayo:
how about we print more money to clear debt and buy refined crude oil? this way the money wont stay in the country

YourMrBoo:
No

Tianamen1:
@PNomsule. If there was no international trade, your idea of printing money may not lead to inflation. You’re quite smart and I wish the best for you. Try to leave that country.

Let me explain. If nigeria earns $100 as foreign exchange in a year and the total amount of naira in circulation in that year is 100 naira, the local value of the naira to the dollar will be 1:1. So for every naira, Nigerians will be able to purchase things an American. Can purchase with 1 dollar. Thus the demand for foreign goods will be high. The lower the price of a foreign good the higher the quantity demanded(opposite side of the demand law).

If we increased the amount of naira in circulation to 1000 and we are still only earning 100 dollars, using basic math, each naira will represent 10 dollars. If we fail to raise the price of the dollars, we will runout of dollars because people have more naira than they had before and the amount of dollars the country has is still the same. What this implies is that the Nigerian will now need 10 naira to purchase foreign goods worth 1 dollars, so within Nigeria, foreign goods have become more expensive.

I hope my explanation is understandable. If there is a flaw in my logic, do not fail to mention it. Nice topic and intelligent question.

Ps

In 2008, all major countries , simultaneously increased the amount of money in supply in their local economies. Most countries had a zero net effect on inflation. Only Greece in Europe suffered massively as they hardly produce anything.

emmaodet:
Of course, consumers will return broke. Unfortunately, most humans are consumers so we will be back to ground zero again and people start calling for printing more money again which would be consumed in the future anyway.

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.