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6 answers

In the US, the money supply is controlled by the Federal Reserve Bank. (Printing currency notes is done by the US Bureau of Printing & Engraving.)

Printing too much money, either in actual notes or in the form of electronic money, is inflationary and causes the value (purchasing power) of the money to become worth less.

That's what Germany did between WW1 and WW2 when they had to repay a huge war debt to the Allied powers. In the 1920s, the German Mark became so worthless, that it was said that you needed a shopping cart full of currency to buy one loaf of bread. If you got your paycheck in the morning, you had better spend it immediately because it would be worth a lot less by the end of the day.

2006-08-18 18:46:09 · answer #1 · answered by Tom-SJ 6 · 0 0

currency is controled by inflation and the dollar index. the more that is printed, the less the value of the money index will be and buying power of inflation. many countries got caught recently producing large amounts of money to buy imports and the u.s. customs caught a few countries making 100 dollar bills from their mints called super bills. as its legal rack paper, but illegal plates. they made trillions of dollars they can pass the pen tests and everything. they were done as the u.s. money was worth more than their own currency.

2006-08-18 19:06:17 · answer #2 · answered by hollywood71@verizon.net 5 · 0 0

Too much printed money in currency devalues the currency.

2006-08-18 18:42:12 · answer #3 · answered by ruthie 6 · 0 0

Because an excess of currency can lead to runaway inflation, as it did in Germany in 1923, when they printed billion mark notes.

2006-08-18 18:44:24 · answer #4 · answered by helixburger 6 · 0 0

The amount of cash printed up for a country depends on how much gold they have in their reserves and how much debt they owe the world.

2006-08-18 18:42:41 · answer #5 · answered by Anonymous · 0 0

if you printed too much money, the value of money would decrease damatically and then the country would suffer a massive inflation problem.

2006-08-19 01:36:00 · answer #6 · answered by BT!! 2 · 0 0

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