just wanted to know how the system works regarding printing money,
2006-07-29 09:12:54 · 4 answers · asked by r s 1 in Business & Finance ➔ Other - Business & Finance
The money that is printed represents a small amount of gold. They can only make money to represent how much gold they have.
2006-07-29 09:16:36 · answer #1 · answered by DJ 2 · 2⤊ 1⤋
I'm not sure of the mechanics but if a country prints too much the value of the money will decrease, infaltion will take hold and the money will become worthless, so like a lot of things to do with money and trade, it is pretty much self regulating.
2006-07-29 16:18:23 · answer #2 · answered by David T 3 · 0⤊ 0⤋
printed money represents such a small portion of the actual value of a country that it doesnt really affect the whole economy. It is only a physical tool of finance.
2006-07-29 16:26:52 · answer #3 · answered by mariamayo9 2 · 0⤊ 0⤋
You need to read a text book on Economics. I am sure someone wll post a simplified version, but it will not make sense. Also, I am sure someoene will post 15 pages of BS, which is also not enough to get it.
BP
2006-07-29 16:16:41 · answer #4 · answered by billyandgaby 7 · 0⤊ 0⤋