Abi oo hmmn smart question

Hahahaha is not possible but i will try that if u vote me for presidency i promise o

gebest:
op op well dat can be done if we have everything in our disposal, in otherwords exportation alone no more importation, the planes, the cupters, cars, ship, weapons, all the merchines, engines, electronics, generators etc will b produced here in nigeria, then that can be done.

How?.

herbie27:
There is always a limit to the amount of money a country can print....else the volume of money in circulation will be too much.

What's wrong if its too muchmuch

Yes, inflation will arise when a country prints its currency in excess. However, the sure way to go about it is, for instance a country like ours can master how to print original US currency which is a tender for international transactions besides it has weight advantage against naira. Although, this is a crime, but then that will not cause inflation to us instead it will become our secret new black gold.

I used to think like that but then....Nigeria oh Nigeria is still useless.

PentiumPro:


You write very good English but yet very deficient in basic economics

His deficiency in Economics made him ask that question. Why not answer him instead of pointing out his deficiencies?

Samguine:


His deficiency in Economics made him ask that question. Why not answer him instead of pointing out his deficiencies?

don't mind him, yeye.

AT OP the more you have of a scarce resource, the more valuable it is.. get scarce foreign currency and your Naira improves.. you do this by International Trade. too bad crude prices have fallen.. we can start exporting Runz Girls and Swagga-boys into Russia and Itally.. the money they will make in one month can pay subsidy for 1 month..

inflation will be on the rise. simple

fiizznation:
The simple answer is inflation. The currency notes that we use don't have any intrinsic value, rather the have exchange value. Which means 50naira doesn't mean its value is 50naira but you can exchange it for goods and services. A country like Zimbabwe couldn't understand this simple economics and they went ahead to produce more and more currencies, at the end what still happened? Well even a pen ended up costing thousands of Zimbabwe dollars and a bread was sold for as high as $2million{Zimbabwe dollars}. Their inflation rate rise to about 80 billion percent. Funny.

And everybody in Zimbabwe instantly became a billionaire{ poor billionaires}

Thank you

I have learnt

Georgry:
Hello Nairalanders....

Knowing fully that a country have the right to print money as much as they desire,and their is no limit to the quantity of money a country can print, this question comes to my mind:

Why can't a country just keep printing money to the stage that it will be enough for every body in the country to be rich...


Economist in the house your explanation is needed here.....

If you can only eat the paper money as your food, then let them print.

Eyah, it will get to a point where the money you printed will not be enough to buy material to print money again. This is called INFLATION

Empero1:

Yes, inflation will arise when a country prints its currency in excess. However,

Thats true

Thank you

PentiumPro:


The paper we call money is just mere paper uses to exchange for good and services. It suppose to represent basically your own contribution to the wealth of the country.
Printing paper money without corresponding wealth increase is courting disaster, inflation and exchage rate against major world currencies will go through the roof.

No no no! If you say it represents individual contribution to wealth you are wrong! the many unemployed youth who are a major part of the population then contribute nothing?

Hisduchess:


lol.no mind d angry part nah typo error.buh don't they have an exchange rate?

Yes they do have exchange rate. Every currency has its exchange rate. But don't forget, my first answer to this thread was directed at the op's question; which was why can't we produce more currencies, and which I used Zimbabwe as an example. Honestly as of today, I don't know if the Zimbabwean dollars is still that weak and utmost useless as it used to be about 2years ago

Georgry:
Hello Nairalanders....

Knowing fully that a country have the right to print money as much as they desire,and their is no limit to the quantity of money a country can print, this question comes to my mind:

Why can't a country just keep printing money to the stage that it will be enough for every body in the country to be rich...


Economist in the house your explanation is needed here.....

/
This is a very intelligent question.

Every currency has to be backed by something of value eg. Gold. And that is the baseline value. Other indices/factors can add value or devalue the currency. This is why people are skeptical about cryptocurrencies.

Also arbitrarily printing money (a devaluing factor) adds to inflation and reduces the value of the currency.

Dnuel:
You have to take course in Economics to know why.

He also needs to learn how to use the english language. Then, and only then, can he become a Minister.

Davinex:
Inflation will be on the rise and the currency will lose it value.

Simple but best response

PentiumPro:


You write very good English but yet very deficient in basic economics

sadly you cannot identify very good english. I dont know about your economics

Most of you laughing @ and bashing OP don't even have an inscive understanding of how the whole thing works. If you really think the OP's question is stupid, come out and give us an insightful analysis of the whole process. We need facts here, I mean real life implications and not textbook implications. I want to learn new things

My brother, the current president of Zimbabwe have already tried it , he even had 1Trn. Zim. dollar in circulation and that never helped things out instead, it pushed Zimbabwe into more economic trouble than they used to be in. Forgive anyone who calls you name over your asking this question, we blacks are behaviorally versatile.

chiefolododo:
Eyah, it will get to a point where the money you printed will not be enough to buy material to print money again. This is called INFLATION

Tell that to Obama and see! the US used this approach in a more systematic manner, its all about proper planning and avoiding excessive printing!

Op do you want to buy 10mb for 50 billion naira?

Really?

Metallurgist:
one of the characteristics of money is SCARCITY, both air and water are the most important things to a human but being found abundantly in nature reduces their value, this simple analogy suffices to show you that the more available money became the less valuable it is.

Harmored:


What's wrong if its too muchmuch

If the quantity of money in circulation is too much, it will lose its value n people will have to carry large quantity of it to exchange for a small quantity of goods and services, dis will lead to inflation.

On the other hand, money must not be too scare nor too much in circulation.

There must be an equilibrium and that's why we have the CBN....if the volume of money in the economy is too much, they reduce it, n if is not much they add....their primary job is to regulate the economy.

Am just passing.... Am just passing....

nobullshit:
My brother, the current president of Zimbabwe have already tried it , he even had 1Trn. Zim. dollar in circulation and that never helped things out instead, it pushed Zimbabwe into more economic trouble than they used to be in. Forgive anyone who calls you name over your asking this question, we blacks are behaviorally versatile.

It was not money printing that caused zimbabwes financial mess, its a lot deeper than that, just look at the Naira now CBN did not print too much yet we have witnessed higher inflation between january and now!

fiizznation:
The simple answer is inflation. The currency notes that we use don't have any intrinsic value, rather the have exchange value. Which means 50naira doesn't mean its value is 50naira but you can exchange it for goods and services. A country like Zimbabwe couldn't understand this simple economics and they went ahead to produce more and more currencies, at the end what still happened? Well even a pen ended up costing thousands of Zimbabwe dollars and a bread was sold for as high as $2million{Zimbabwe dollars}. Their inflation rate rise to about 80 billion percent. Funny.

And everybody in Zimbabwe instantly became a billionaire{ poor billionaires}

Make e be like that for here too.More inflation, more money to spend. I don't like poverty.

Trendy247:
I will like to work in d printing room for just 1 week without pay

then what happy?
steal steal until u get caught

My brother you are not alone in thinking so jare. Used to think so too but economics taught that there has to be equal flow of cash and goods.

fiizznation:
The simple answer is inflation. The currency notes that we use don't have any intrinsic value, rather the have exchange value. Which means 50naira doesn't mean its value is 50naira but you can exchange it for goods and services. A country like Zimbabwe couldn't understand this simple economics and they went ahead to produce more and more currencies, at the end what still happened? Well even a pen ended up costing thousands of Zimbabwe dollars and a bread was sold for as high as $2million{Zimbabwe dollars}. Their inflation rate rise to about 80 billion percent. Funny.

And everybody in Zimbabwe instantly became a billionaire{ poor billionaires}

Printing money will not always result in inflation. Although it is the conventional wisdom, it is not always the case.

The conventional wisdom is based on the simple equation MV = PY where M is the supply of money, V is the velocity of money, P is prices and Y is the total quantity of goods.

The conventional wisdom that printing money simply increases inflation assumes that if M is increased, all other things being constant, then P should increase.

But all other things shouldn't have to be constant. For example, if printing money leads to more quantity of goods, prices could actually fall.

Furthermore, the argument is nonsense that more money supply equals higher inflation. Everyday a bank creates a loan, it is basically increasing the money supply out of thin air, which may not necessarily lead to inflation.

Finally, think about this...suppose the central bank prints out 10 billion naira notes today, and they leave it in the vault...would it cause inflation?

The answer is no

Suppose, the CBN choose to give the 10 billion notes to just 10 people, would this cause inflation? The answer is no! hence the role of the velocity of money.

EDIT: That said, you are correct, printing money to make all Nigerians billionaires will result in hyperinflation.