₦airaland Forum

PNomsule:
I know dumb people when I see them. If you read the post and this is only what you could come up with, I say na u dumb pass. Dumbo!

Nothing to contribute because u know why, u are empty!!!

jumper524:
the dollar is the highest currency in circulation and its still valuable. There's cash shortage in Nigeria, go to market and see shops overstocked with little or no buyer, inflation can only happen if shops are not overstocked.

CondemnBattery:
Dumb question

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

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

naijapips04:
Production by importation? What has he ever produced?

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:
What many don't know is that, excess supply of money does not neccessarily means everyone will go for bread, cars or consumption purposes. Progressive Capitalists will channel more of it to production and that is why a wise wealthy man once said, if you take away all my wealth, I will bounce back. Invariably, if you give people who only think consumption when money is handed them, in no distant time, will return broke.

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

JoshTim:
You need to be flogged. I swear. Which Russia doesn't follow theory?


I need to use oraimo cord on you

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?

PNomsule:
My problem is those responding and claiming financial experts are simply regurgitating textbook inflation analysis which I already envisaged in my post.

Mckandre:
don't forget some business men intentionally hoard goods to reduce supply and cause increase in demand, thereby leading to increase in price of goods and services. People somewhere somehow re contributing to the menace.

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

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?

PNomsule:
It appears the responders I'm getting on this issue are plain textbook analysis and not even addressing the issues from the points I posited, especially that the fears you raised, my post envisaged it already?

Can prices be controlled, if not what then is the usefulness of the Pricing Regulatory & Control bodies we have in the country?

What happens to the urgency of Capitalists to get more people employed as to meet rising demands associated naturally from too much money chasing fewer goods?

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?

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.

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.

Tobijays:
so tell me which one of the theories they used

Komu1048:
If you want to debate tinubu regime n Peter Obi as govt. the state of their state when they were governor and what they left behind as at now. I will flaw you mercilessly, don’t compare a dog with a lion. I have stayed in the two state I can tell you how it was n how they left it. Abeg shift

PNomsule:
So my question remains valid, can we print more money and engage same in "viable agricultural crop & meat production" as to employ more able bodied men & women as to fight unemployment and by extension, poverty?

NotBeenPaid:

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They've been printing more money in secret which they loot. Remember, sometime ago Obaseki accused CBN of printing monies for private pockets.

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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.

Frezhkid10:
But the USA and other western nations printed cash to sustain their economy but we can’t because they told us it will cause inflation...
I don’t support tinubu ooo..but you see that printing cash idea he brought was the best thing for Nigeria at that time..

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.