In 2008,the then President of Zimbabwe decided to print money as a solution to his countries economic and financial woes.

He was ill advised by his economic team. So he instructed the Central Bank Governor to print money and flood the country with excessive cash.

Here is what happened afterwards:
https://www.youtube.com/watch?v=RnVQXWxKE8s

U will have inflation

Printing money is not the solution to economic woes.

Sometimes, of think there's a way to print money and avoid inflation Don't blame Me I ain't no expert but lemme research and understand how this inflation works.

Money is a store of value.
If you print more money, the excess cash won't have value. Money represents something (value). When that something does not exist, the excess cash would lose value.

Economic activities provide this value of which money represents.

Honestly there are fools on this forum.

By their mórónic questions you shall know them.

Edit:

[img]https://images./3b611SCxvndHkMGgsHpJ1N.jpg[/img]

miracood:
don't be unfortunate pls

seanwilliam:
you are very stupid and senseless.. if you quote me then you are confirmed mòron

Elimon:

Haba!...even me i didn't study economics but I've been asking myself these questions..I just got to know about it here..
Who is the slowpoke..you or op

Habiodunz:

If no be say you self dey stupid
The people that were answering the question without insult did they die
Na your type dey form oversabi for class and they no sabi anything
So tell me who the fool is

ContractKiller:
Honestly there are fools on this forum.

By their mórónic questions you shall know them.

He's a child and doesn't know. I hope he learns from the posters above you.

Everyone should know about business principles and how to manage and grow any business.
That's why in my YouTube channel i discuss these tips and secrets to manage, grow and suatain small and medium businesses.
Click the link below to subscribe, like, comment and share my YouTube videos.

I've heard university graduates ask similar questions.

armadeo:





Hes a child and doent know. I hope he learns from the posters above you.

Only dollars, euro and yen can be printed like that because they are traded currencies. Those poor countries have currencies of no value outside their country. They can't print money

Modified

You can print money if your currency itself is demanded for transactions abroad. That is why u.s and Europeans have gone far. They can afford to print their money and spend it abroad...not in their own country.

So if u.s needs to buy oil from Nigeria...it can print the money and buy the oil and that way, they keep their economy alive. That is neo colonialism

ContractKiller:
Honestly there are fools on this forum.

By their mórónic questions you shall know them.

don't be unfortunate pls

You can't just print money like that, it will lead to hyperinflation

If you print more money can you use it for import payments? No.

Paper money is tied to commodities with higher values such as gold or the US dollar. Your country's paper money must be at par with the gold or currencies of nations with strong gold base with the central bank. When there's a deficit you

1. devalue your currency or
2. borrow or
3. increase exports or
4. Attract foreign investments.

ContractKiller:
Honestly there are fools on this forum.

By their mórónic questions you shall know them.

So person cannot ask question again. Proudness kills faster than anything.

Op don watch money heist tired

Example of a country like that is Zimbabwe They use like a truck of cash to buy a tin of milk.



In mr omar's voice~ TRAGIC!

Make we sit down here dey learn

I asked my lecturer this question in my first year during lecture ,I can't even remember the explanation he gave me then.

Just like most of them forming "I too knw" above me dia, I knw that printing money like dat wld lead to inflation and devaluation of the currency but gaskiya I don't know how, or the mechanism behind it..

Pls someone should take his/her time to explain this thing to us.. We dat dun knw ain't illiterates, its jst not our field..

ContractKiller:
Honestly there are fools on this forum.

By their mórónic questions you shall know them.

If no be say you self dey stupid
The people that were answering the question without insult did they die
Na your type dey form oversabi for class and they no sabi anything
So tell me who the fool is

emerazz:
Just like most of them forming "I too knw" above me dia, I knw that printing money like dat wld lead to inflation and devaluation of the currency but gaskiya I don't know how, or the mechanism behind it..

Pls let should take his/her time to explain this thing to us.. We dat dun knw ain't illiterates, its jst not our field..

Let me try to...though it’s a lot more complex theoretically than what I’m about to say.

Think of every country as a market in economic terms, a market is usually made up of two sides (buyers and sellers), buyers represent demand while sellers represent supply. Inflation is largely driven by the relationship between aggregate demand and supply in the economy. If demand overly exceeds supply then you have inflationary tendencies, if supply exceeds demand you have deflation, which is less common but a bigger problem than inflation.

Printing money isn’t directly the issue as if a Government prints money and hides it somewhere in a vault without spending it then it will have no ripple effect. The challenge starts when the government starts to spend printed money, as doing this will increase the total money supply in the economy, and without an attendant increase in productivity (ability for the economy to generate supply), prices will go up.

For example, you use printed money to pay salaries say to increase salaries from 30k minimum wage to 50k. That additional money in people’s pockets is going to be spent on goods. The biggest part of the inflation index here in Nigeria is the Consumer Price Index (which basically tracks the prices of a select number of staple foods that ppl normally buy like rice, beans etc.) In Nigeria, about 60% - 70% of income is spent on food and consumables according to the NBS (I don’t recall the specific figure but it’s higher than 50%).

The suppliers of these goods will see an increase in demand and because they have the same number of goods for sale, they will increase prices to respond to the increased demand in the market. This increase in prices at an aggregate level is what is termed as inflation.

Hope this helps?

Alero3Arubi:
Everyone should know about business principles and how to manage and grow any business.
That's why in my YouTube channel i discuss these tips and secrets to manage, grow and suatain small and medium businesses.
Click the link below to subscribe, like, comment and share my YouTube videos.

What makes you qualify to talk on how to manage business.

emerazz:
Just like most of them forming "I too knw" above me dia, I knw that printing money like dat wld lead to inflation and devaluation of the currency but gaskiya I don't know how, or the mechanism behind it..

Pls let should take his/her time to explain this thing to us.. We dat dun knw ain't illiterates, its jst not our field..

It's not everyone that went to school are literate infact some are illiterates.
The problem with many graduates is the fact that they don't understand the meaning of perspectivalism. Which is the core principle behind reality. The way you see a thing is not how another person sees it.

@Iolo i think i get. When they over print money prices of goods will go up. Imagine buying chewing gum at 200. Thats tragic

ContractKiller:
Honestly there are fools on this forum.

By their mórónic questions you shall know them.

You don't insult anyone that seeks knowledge.

I can assure you that there are basic things in other fields that you don't know.

Thank you

ContractKiller:
Honestly there are fools on this forum.

By their mórónic questions you shall know them.

Honestly!!! You're the fool on this forum....
#Busy body...#Ode!!!!

Vivian16:
I asked my lecturer this question in my first year during lecture ,I can't even remember the explanation he gave me then.

U wey be pro for Copy and paste. How u wan tek remember

ElRapido:


What makes you qualify to talk on how to manage business.

Watch my first video and find out.

ContractKiller:
Honestly there are fools on this forum.

By their mórónic questions you shall know them.

Professor you need this

Hahahahahaha!!! print money kwa?! Money is just paper!. The real wealth of a country is the value of the goods and services it produces. If you don't increase your productivity and go ahead to print more money, you'll end up having too much money chasing few products(demand-pulled inflation). The situation might degenerate to hyper-inflation where one loaf of bread will go for as high as 100k! lolz

Thanks for ur time man, initially I was not conversed about economy stuff but seeing ur write up makes a difference

Iolo:


Let me try to...though it’s a lot more complex theoretically than what I’m about to say.

Think of every country as a market in economic terms, a market is usually made up of two sides (buyers and sellers), buyers represent demand while sellers represent supply. Inflation is largely driven by the relationship between aggregate demand and supply in the economy. If demand overly exceeds supply then you have inflationary tendencies, if supply exceeds demand you have deflation, which is less common but a bigger problem than inflation.

Printing money isn’t directly the issue as if a Government prints money and hides it somewhere in a vault without spending it then it will have no ripple effect. The challenge starts when the government starts to spend printed money, as doing this will increase the total money supply in the economy, and without an attendant increase in productivity (ability for the economy to generate supply), prices will go up.

For example, you use printed money to pay salaries say to increase salaries from 30k minimum wage to 50k. That additional money in people’s pockets is going to be spent on goods. The biggest part of the inflation index here in Nigeria is the Consumer Price Index (which basically tracks the prices of a select number of staple foods that ppl normally buy like rice, beans etc.) In Nigeria, about 60% - 70% of income is spent on food and consumables according to the NBS (I don’t recall the specific figure but it’s higher than 50%).

The suppliers of these goods will see an increase in demand and because they have the same number of goods for sale, they will increase prices to respond to the increased demand in the market. This increase in prices at an aggregate level is what is termed as inflation.

Hope this helps?

ContractKiller:
Honestly there are fools on this forum.

By their mórónic questions you shall know them.

Haba!...even me i didn't study economics but I've been asking myself these questions..I just got to know about it here..
Who is the slowpoke..you or op