4xplore:

If printing the naira brings the money n the buyers, where are the goods n who's providing the services in times like this?

Wasky101:

This man you just dragged is a seasoned accountant that has worked for firms you could only dream about but suddenly emeka that sells spare parts in onitsha suddenly knows more than his three generations.
So pathetic

NwaNimo1:
lol.....mad man.

Inflation nko?

loswhite:
Quantitative easing was not introduced to absorb the effect of coronavirus on their economy....If you are just hearing of quantitative easing this year then you should Google and get more information. Have you ask yourself the simple question if it was that easy to just print money as you like why are African countries borrowing money and not just print? Or you think tinubu at 68 is wiser than them all right?

neoclassical:
If truly he is an Accountant as you posited, but committed this kind of economic blunder, then his certificate is questionable. I am a trained Economist with years of teaching experience at Undergraduate and Postgraduate levels. If my student gives me this kind of advice in Class, I will be worried so to speak. As an Accountant, he ought to have factored in some macroeconomic variables that can trigger inflationary pressures both in the short run and long run, owing to low level of productivity at the moment, resulting in sharp increase in demand over supply, holding other factors constant. The penacea to this economic debacle and Quagmire is to raise productivity of household goods and break the chain of distribution - from producers directly to consumers, in order to avoid hoarding and price hike.

CoronaVirusPro:


The ones they will loot

neoclassical:
If truly he is an Accountant as you posited, but committed this kind of economic blunder, then his certificate is questionable. I am a trained Economist with years of teaching experience at Undergraduate and Postgraduate levels. If my student gives me this kind of advice in Class, I will be worried so to speak. As an Accountant, he ought to have factored in some macroeconomic variables that can trigger inflationary pressures both in the short run and long run, owing to low level of productivity at the moment, resulting in sharp increase in demand over supply, holding other factors constant. The penacea to this economic debacle and Quagmire is to raise productivity of household goods and break the chain of distribution - from producers directly to consumers, in order to avoid hoarding and price hike.

NwaNimo1:
lol.....mad man.

Inflation nko?

Oshigun:


You are the one who is not wise. Tinubu is suggesting that this is a legitimate option. World class economists happen to agree with him and not you isale Eko experts. Are you talking of inflation when we are discussing a pandemic that could render money worthless and people scavenging in the streets for food if the worst

NwaNimo1:
lol.....mad man.

Inflation nko?

dele1727:


Most of the world economy is based on Credit...infact the paper you call money is actually credit note with CBN promising to settle it with another transaction...

The vulcanizer collect the credit note for service rendered and the gives the rice seller for goods sold and now the credit note is with the rice seller.


During recessions...
The CBN/Government help by
1 Reduce the lending rate
2, Print more bills.. Thereby flooding the market with more credit
3, reducing Taxes...

Please let us ask questions before we talk

NwaNimo1:
lol.....mad man.

Inflation nko?

MT:
I really need to know as this is not my turf. Why does the the US get away with printing more dollars to save her economy?. Do the laws of micro economic not applicable to US in this case? . Please I will need to be genuinely educated in this area.

4Play:


It's funny how people who accuse others of being badly educated are themselves badly educated. Yours is a prime example of the saying that a little bit of knowledge is a dangerous thing.

You have managed to attain some vague familiarity with the policy of quantitative easing (QE) but clearly have no idea of conditions under which it is feasible. QE helps in economies facing low inflation (almost in deflation territory) and negative interest rates. To avoid a deflationary spiral, central banks do QE to keep inflation from going into deflation.

Nigeria and most African/developing countries have a different problem - stagflation. This is where inflation increases as the economy goes into recession so printing more money turns you into Venezuela or Zimbabwe pretty fast.

aragonchuks:
Sometimes I wonder who votes this clueless politicians into power that don’t even know Economics , just imagine someone father , grandfather and leader vomiting nonsense without thinking about inflation .. As one Imam said currently “ONLY FOOLS CAN VOTE A BIGGER FOOL INTO POWER “.

MT:


While I am neutral in this case, do you realise that academic knowledge alone might not suffice on the field, where the real variables are interracting. Then again, if you are a lecturer in the US and a student gives you this kind of advice, will you accept it or you will raise the same red flag?. Can you justify your position considering the 2 scenarios please?. Please note that I was not attacking your submission, I just wanted to learn genuinely.

Tumbulum:
it's called productivity. Money is a reward for being productive. The world leading companies are owned by us citizens eg google, Facebook,Tesla, general motors,ford etc. This is why they can print money and get away with it. They are not dependent on other countries to buy the things they need to run their country.

But for Nigeria, what do you have ? Crude export and crude export and few manufacturing hub still dependent on foreign technology to keep running. You cannot print currency unless you want to end up like Zimbabwe.

The smoking gun is that money is a just a way to measure the value you have created. If you create zero value and you print plenty it's becomes useless.

neoclassical:
Sure, these are two different scenarios. In the case of US, there was economic depression, however, investment and productivity in the real sector was not severed. The economy was running, but there was negative growth for many consecutive times i.e economic depression.
Scenario 2 , Most companies in Nigeria are closed down, government offices are closed, most retail businesses are equally closed, meaning, productivity is below equilibrium, supply is low, demand is high in relation to supply, leading to vicious circle of poverty, since household members are home together at the moment. So printing more money to chase a few available goods will render the goods worthless and increase the vicious circle of poverty , especially in the long run.

Herdsmen:
A thief will always be a thief

No be his mates Dey donate salaries cash materials
This crook na to loot Dey his mind.

Print more naira notes ... while your bullion van keep increasing fro 3 to 10.

Corona locate you.

ijustdey:


https://punchng.com/coronavirus-print-more-naira-notes-tinubu-tells-fg/

rusher14:


Stop arguing blindly.

Why I cannot use a term you did not invent is rather befuddling.

America itself worries about hyperinflation following quantitative easing yet they are undertaking it.

Of all the contributors before me, I've had the most comments an indication that they all contributed nothing of logical or economic argument.

More than anything, my post questions why we cannot attempt it.

In any case, I can bet my last dollar, Nigeria would print more currency and if you were on the CBN board, you would vote in its support.

4xplore:
The question is spend more on what? Who's producing the goods n providing the services in Nigeria at this time All the extra money will end up chasing a limit qty of goods n services thus driving the prices even higher.

Our economy is still largely import dependent so all d printed cash will still b exchanged for the USD in other to bring in supplies.

Printing money may work in the US but it wont work here.

Housing:


US is the largest importer of Chinese goods in fact US has trade deficit of over $380Billion with China successful in the last two years and was far more than this before 2018.

The country is moving towards stagflation but most youth that commented earlier have succeeded in shrinking the evaluation scope of what Tinubu said. That is Nairaland for you.

Please look at the effects of LDR directed by the CBN on the economy then you will understand what Tinubu is hitting at

4xplore:


You are yet to answer my question.
Flooding the market with credits is not the problem. Where there is oversupply of credits chasing limited resources it leads to and increase in price, that the root of the problem or you want to deny that importation, production n services is low at this point in time?