2007-03-14 17:47:58 · 3 answers · asked by jingly 1 in Social Science ➔ Economics
Paper money is supposed to be backed by gold or silver.
When there is deflation, as you call it, there's lots of paper "money", but not enough strength in the economy to back the money. If they make too much "paper"money, it would be worthless.
2007-03-14 18:06:46 · answer #1 · answered by gemma 4 · 0⤊ 0⤋
The government must find some way to distribute the curency it creates. Just printing the curency does not fix the problem of deflation.
There are several ways to distribute the money.
Reducing the taxes collected
Provide payments to classes of people like the unemployed or the poor.
Subsidize some activity that is considered benefitial to society.
Increase the size of the armed forces.
2007-03-16 18:05:20 · answer #2 · answered by anonimous 6 · 0⤊ 0⤋
i think of they're going to easily tattoo a bar code on our heads at beginning. heavily, particular, all our freedoms are being curtailed piece via piece and people who say it is not happening are probably lobotomised already!
2016-11-25 21:05:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋