2007-04-25 05:27:31 · 4 answers · asked by Prasath 1 in Business & Finance ➔ Investing
Generally the government only prints one currency: its own.
If you're asking when they print more money, they're always printing money to replace money that gets worn out.
2007-04-25 05:35:43 · answer #1 · answered by BosCFA 5 · 1⤊ 0⤋
Just printing more currency notes without the real money backing it is of no use and will lead to inflation. And devaluation against other currencies and thus will lead to higher external debt.
Normally currency notes are printed to take care of replacement needs due to wear and tear. And fresh currency is printed to take care of increasing wealth of the nation.
2007-04-25 12:37:19 · answer #2 · answered by Swamy 7 · 1⤊ 0⤋
Actually its not advisable for anybody to print more money unless the demand for the currency is more than supply. This is to mantain some kind of balance in the value of the currency.
2007-04-25 23:11:25 · answer #3 · answered by yeohbiz 2 · 0⤊ 0⤋
Printing more money contributes to INFLATION. More money without gold or other precious metal to back it up makes the money worth less, and therefore higher prices will result.
2007-04-25 12:35:17 · answer #4 · answered by WhatAmI? 7 · 0⤊ 0⤋