Why don't poor countries simply print themselves more money?

Answer 1

The value of money is based on what it's value is on the international money market. For money to have more value exports and industry need to increase.

If you print more bills, you only have more total notes reprasenting the wealth of a nation, so each note is worth less the more you print.

Answer 2

What is money? June 12, 2003

A couple of paragraphs from a printed article that's been referenced.

That is why (simply printing new money will not create wealth for a country). Money is created by a kind of perpetual interaction between concrete things, our intangible desire for them, and our abstract faith in what has value ; money is valuable because we want it, but we want it only because it can get us a desired product or service.

Last paragraph of article
Remember, as long as people have faith in the currency, a central bank can issue more of it. But if the Fed issues too much money, the value will go down, as with anything that has a higher supply than demand. So even though technically it can create money "out of thin air' the central bank cannot simply print money as it wants.

In my view: A poor country does not have much to sell, that is why so many poor countries seem to deal in illegal drugs.

Answer 3

Simple supply-demand thing:
If there is more suppy of money the price will fall, i.e. the exchange rate is going down and you cannot buy more than before.
High inflation is also quite bad for e.g. pensioneers not being able to increase their earnings quickly enough to catch up with inflation.
A once-off inflation boost can also lead to continous inflation that can't be stopped immediately and easily.

Answer 4

The could be wealthy, yet no longer wealthy. In nominal words all and sundry ought to become a millionaire or billionaire, or maybe trillionaire. In genuine words besides the indisputable fact that there could be not greater products exchanged to that money and there could be not greater genuine wealth. money is a medium of oblique replace of different products and not those different products. as properly the advent of recent money interferes with he ability of folk to correctly assume destiny situations which may bring about instability or maybe capital intake, leaving that united states of america with much less wealth than it had in the previous.

Answer 5

germany tried doing that and it didnt work it made money praticaly worthless to the point were people use to use there wages to play with and light fires and youd need a whellbarrow full of money to buy bread

Answer 6

printing money is not the solution.
money is legal tender based on the countries fiscus :- resources and balance of payments

Answer 7

It's been tried - it creates massive inflation and a valueless currency on the international market.

Answer 8

it messes with the whole economy and devalues the existing exchange rates.

Answer 9

more money = unvaluable money
it's simple a logic

Answer 10

It doesn work like that.

Stupid question.