what dictates the value of money??????
2006-11-02 05:15:26 · 9 answers · asked by whatever 1 in Social Science ➔ Economics
printing money is very inflationary. You don't get anything but a currency that is worth next to nothing. It has actually happened a lot.
You need to understand money history to understand it. Metal coins was the start. The value of the money was basically the value of the metal. Gold, copper, silver, etc. Governments then printed paper money. They said, okay instead of giving you a pound of gold, I will store it in a vault and here is an IOU (paper money). If you ever want, bring it by the vault and we will give you your pound of gold. Then they just said okay, money is money. It's not backed by gold. But it is still based on the value of the country. So instead of saying we are a wealthy country, we have x tonnes of gold in storage, it is we are wealthy, we produce x amount of cars and computers.
So in a gold standard. If you had a tone of gold and everyone knew you had a tone of gold, if you printed twice as much money the value is still a tone of gold. Twice as much printed money only means it is half as much.
Today, on a very generalized version, if your poor country produces 100 goats they sell to America, the currency is worth 100 goats. If you print twice as much money, the total money is still only worth 100 goats. The value of each bill will be less.
2006-11-02 05:46:24 · answer #1 · answered by JuanB 7 · 1⤊ 0⤋
Why some countries are poor is a very good question. We did some countries become rich?
Some answers are geography, history, corruption, natural resources.
Geography is very important in determining the potential of the nation. If there are many easily navigable rivers transportation, trade and communication is cheaper, sea ports. Mountains hamper trade and development by making it more expensive to move ideas and goods.
War, if a country has been engaged in a long civil war, chances are is that the infrastructure has been destroyed and education levels have fallen. It could take a couple of generations to rebuild,
Culture.
Natural reasouses.
The list is much longer, and there are no simple answers, but I believe that this a question that we should spend more time thinking about.
2006-11-02 05:52:36 · answer #2 · answered by Just Wondering 3 · 0⤊ 0⤋
some countries are poor for a few different reasons. the biggest one is that they dont have the resources needed to export. the countries cant just print money because they have to have something to back it up with. if they were to just print more and more money eventually there would be so much that it would saturate the economy making it useless. the final reason i can think of is that the international banking systems wont loan them the money needed to get thier economies going because they may not get it paid back. these banking circles include the the Rothchilds, rockefellers and popular groups such as J.P Morgan all of which have power in our government as well.
2006-11-02 05:22:36 · answer #3 · answered by sigmapi_razz 2 · 0⤊ 0⤋
Just printing their own money doesnt give a country more resources, usually a nation would have the same amount of its own money as it is worth.
Meaning: If one person had all the money of one country, he would be able to buy the whole country - all of it.
As soon amount of the printed money would buy more than the countries estimated value - you have an inflation.
Meaning the printed money is worth less than it used to be.
2006-11-02 05:30:42 · answer #4 · answered by ganja_claus 6 · 0⤊ 0⤋
Oh dear, well, it doesn't work that way. Printed money is just paper. It's worthless unless backed by the government that produces it. In other words, the paper is worth nothing in and of itself. There has to be the economy of the country printing the money behind it for there to be any value.
Try taking a basic Economics 101 class in school. It will help you greatly.
2006-11-02 05:18:21 · answer #5 · answered by kja63 7 · 2⤊ 0⤋
I'm not entirely sure I understand what you are asking. If what you are studying and learning in bible classes isn't working for you, I probably wouldn't spend my money right away on Bible College. I'd probably continue studying and learning and exploring the spiritual path you are on, but either put off Bible College until you are a bit more sure or just take some general education courses that would transfer anywhere, such Mathematics and so on, until I was a bit more sure either way.
2016-03-28 04:45:59 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Because that would cause inflation, the main reason for poor nations are resource exploitation and over population.
The value of money is no longer based on a 'gold currency'. Today the value of a dollar is based on the productivity of a nation minus its debts. (The US needs to watch out)
2006-11-02 05:18:27 · answer #7 · answered by Kelly L 5 · 3⤊ 0⤋
You have to have something that represents the money the us has gold and silver you can not just make value appear
2006-11-02 05:17:35 · answer #8 · answered by attack_rubberDuckyman 2 · 0⤊ 1⤋
the amount of natural resources (ie, gold, etc) in a country....we can't just print money....it wouldn't have value if we did that.
2006-11-02 05:18:09 · answer #9 · answered by Anonymous · 1⤊ 1⤋