how do the mint know how much new money to print?

Question

how do they know? I presume that they need to create 'new money' in line with inflation? but how do they know how much new money to print, so that it doesn't end up devaluing. something I have been thinking about for ages.

Answer 1

no
they always print of money (because money is the receipt form of gold) and inflation is caused by the printing of more receipts, devaluing money (notes coins).
because gold stays the same size, but how many receipts there are to that gold changes
the more the less each is worth

well this is what i have been led to believe

Answer 2

Providing the amount of gold reserves that The Bank of England holds, does not alter radically, then new money is generally issued to replace `old` money. When notes become dirty or damaged and coins become defaced they are kept back by the high street banks, and sent to the Royal Mint to be destroyed. New coins and notes are issued to replace them and sent to the various banks and they pass it on to their customers. Of course, we must never have more paper money than we have gold value for. If this happened drastic devaluation would occur and the country could go bankrupt.

Answer 3

mints decide how much money to print depending on the gold reserves in the country.. more print means more money in the market which implies an increase in inflation... a balance has to be struck based on the current market situation..

Answer 4

new for old otherwise the economy would not sustaine itself and inflation would go through the roof

Answer 5

old bank notes are collected and destroyed...new notes are printed to replace them in equal numbers.

Answer 6

I think most times...they just print new to replace old.
I could be wrong though.