question about econnomy..?

Question

i was a science student. so i didnt study economy. however i m interested in it. i have a question about economy which might sound funny to u.
if a country want to boost its economy, why dont they create more money? i m quite blurred about this question, that why cant our country create more money ( genuine one)?
another question is where is our money created? by our own country or other country? otherwise how come we cannot create our own money to boost our country economy.
sorry for this question, i know it very ridiculous but i really don know

Answer 1

It's a fair question. The short answer is that it has been tried numerous times, and it doesn't work. In Germany, in 1922 and '23, the government tried this; the currency became so debased that they printed notes with a value of 100,000,000 marks. Several such would buy you a newspaper. My favorite tale of that era concerns a man who took a wheelbarrow full of money to the store to buy a loaf of bread. He went into the store to arrange the deal, but left the wheelbarrow and money outside. When he went back out, he discovered that someone had stolen the wheelbarrow -- and dumped the money. The inflation was finally stopped, with new reichsmarks being issued worth a trillion of the old ones.

So, if kiting the money supply is not the answer, what is? Value is created by trade, so you want to encourage trade by minimizing regulation, protecting property rights, and having low taxes on transactions. Bush got this one right by cutting taxes; the resulting increase in business has increased Federal tax collections by over $1,000,000,000,000 over what they would otherwise have been. But Europe has gone the other way, with high taxes and stifling regulations, and has been in a slump for years.

Answer 2

Its against the law both domestic law and international law. But if you did create more money it would flood the economy with unsustainable growth with would would probably cause a recession. People would suddenly go out buying things putting more money in the economy but this could not be sustained in the long run eventually the money would run out no one could buy anything, the currency would depreciate and it would cause all sorts of trouble.