2007-04-13 05:54:45 · 6 answers · asked by kenny b 1 in Business & Finance ➔ Personal Finance
Yes, indeed, and some do.
The problem with printing too much currency, though, is that you end up with an ever-increasing money supply chasing the same amount of goods and services, which results in price inflation. That, in turn, reduces the value of your money.
A few historical examples would be Germany in the early 1920s (You have probably seen the photos of workers with wheelbarrows full of nearly worthless banknotes), Yugoslavia in the early 1990s (perhaps you have seen the 1993 Yugoslavia 500,000,000,000 Dinar note for sale on eBay) and present day Zimbabwe, which has an annual inflation rate of nearly 2000 per cent right now.
2007-04-13 15:15:45 · answer #1 · answered by F. Frederick Skitty 7 · 0⤊ 0⤋
It would depend on the amount of resources the country has. For exmaple, a country which stores gold in its reserve can only create currency according to its golds's worth.
The reserve would include all valuable resources in the country which belong to the government.
2007-04-13 06:10:46 · answer #2 · answered by cie6868 2 · 0⤊ 0⤋
regrettably, authorities's may have their vital monetary corporation(s) or reserve deal with the quantity of earnings flow up or down by using only printing better or a lot less to stay alongside of positioned on & tear disposal and actual outflows. Why? They positioned the boldness of their overseas money's power antagonistic to their view of "provide as against call for" economics and they imagine they're going to win.
2016-11-23 17:19:41 · answer #3 · answered by klohs 4 · 0⤊ 0⤋
No.
It cant
Then the Value of its currency will go down in the sensex.
Gotcha??
2007-04-13 06:02:30 · answer #4 · answered by Pujhi 2 · 0⤊ 0⤋
Subject to the laws of that country, yes.
Paper money is a promissory note.
2007-04-13 06:06:31 · answer #5 · answered by Darth Vader 6 · 0⤊ 0⤋
No
2007-04-14 03:54:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋