What will happen to a given country's economy if the government just printed money...?

Question

... and gave them freely to all its citizens especially the poors and needys?

Answer 1

Money, like everything else, has value because of supply and demand. If they govt prints too much money, there will be too much supply, and therefore very little demand. This means that the value of the money will plummet. Therefore it will take more and more of that money to buy things, especially items from outside the country. That will lead to the gov't having to print more money, which further devalues it, and so on and so on, and eventually it takes a bag full of money just to buy a loaf of bread

Answer 2

The value of an economy is the sum of all its goods and services. The price of a given good or service depends of what people are willing to pay for it. If you double the amount of currency, people will have twice the amount of money to bid for products and services. This does not change the total value of the total goods and services, it just devalues the currency which we call inflation. If the value of goods and services grows by 5% and they print 5% more currency, there is no inflation.

Answer 3

The currency would become less valuable and evrything would take more money to buy...otherwise known as inflation.

If everyone made a billion dollars a year, cars would cost 500 million, gas would be 30 thousand a gallon, and it would cost you 100 thousand to get a decent lunch. It just works out to too much work hauling around all that cash.

Answer 4

There is usually a certain amount of currency released every year.

If they printed TWICE the amount of currency and distributed it, it would be worth only about HALF as much (since there is more money in circulation.)

This wouldn't be good for the workers, since their salaries will NOT be doubled, and they would have to work twice as long to get the same amount of buying power.

So MORE MONEY is not the answer. But more HELP from others with EXISTING currency is needed to balance things out.

Answer 5

Then the "money" would have a lot less worth and then inflation would sky-rocket. We saw this during the Carter Administration..they simply printed lot's of money to pump into the economy..it failed. We have also seen many other nations desperate to improve their economies..it doesn't work!

Answer 6

Because money would be so plentiful, the value of it would plummet and inflation would skyrocket. For example, a piece of bread could cost $850,000.00

Answer 7

Inflation.

Answer 8

You would need a wheelbarrow to carry your money to the shop for a loaf of bread .
in other words there would be too much money so it would be worth nothing.

Answer 9

You will have a 100% poor nation with monopoly money...

Answer 10

this will increase the flow of money in market and thus inflation