2006-12-22 06:00:22 · 4 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Just to be sure that we understand that in modern economic terms "printing money" does not literally mean that physically cranking out more paper currency influences economic functioning to any real extent. The concept of money, in all forms, is an abstraction developed to represent value or need to allow the easy operation of commerce and banking. Most financial exchanges are done using electronic means, not paper notes.
In the US, as was previously stated, the Federal Reserve Board controls the money supply. When the US government spends more than it collects in revenues, it must meet this obligation by borrowing money or "printing money." Printing money in this sense does not mean adding a second shift at the mint, it means paying bills using a "tab" that will hopefully be covered by future tax revenues.
2006-12-22 10:32:41 · answer #1 · answered by db79300 4 · 0⤊ 0⤋
in relative terms only.... the federal reserve controls this. and it aint as simple as you think... if there is too much money out there then inflation just eats it up. if there is not enough then recession begins. its a line the ferderal reserve monitors all the time... BUT there is ALOT more other factors that decide this than what I have spoken here. KEN BERNANKE is the federal reserve chairman currently. He took the place of Mr. Alan Greenspan this year.
2006-12-22 14:22:52 · answer #2 · answered by michael f 2 · 0⤊ 0⤋
Yes indeed. And our rivers flow with the finest wine and all our chickens lay golden eggs. And everyone has enough to eat because all we have to do is get up early enough to gather the Manna that falls from heaven.
2006-12-22 14:08:07 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Yes they can, but printing too much causes inflation, which hurts the country.
Why couldn't they print money?
2006-12-22 14:11:09 · answer #4 · answered by Cadair360 3 · 0⤊ 0⤋