how do governments control the value of money?

Answer 1

There are two sides for controlling value of money.Controlling value of money means controlling inflation.But theory is that low rate of inflation is good for economy.The controlling value money is by controlling quantity and holding cost of money.There is two approach for it,the income approach and expenditure approach.To curtail income/money supply the Govt uses income tax and other direct taxes.To control expenditure indirect taxes are increased.The central bank of the country uses interest rate(known as bank rate) and open market operation to control money supply and inflation.The Govt policies are called "fiscal policy" and central bank policy "monetary policy".

Answer 2

Through a scam that is called Factional Reserve Banking applied on a World Wide Scale. They print up monies out of thin air and then set the value of the one set of air as against another to the benefit of those that support and/or run the scam.

That is the really fast and loose way of explaining the matter, but for more on that subject, google "The Money Masters" and you will see an American perspective of the scam in action.

Answer 3

By making sure that most of us don't get hold of too much of it.

Its actually very magnanimous of them of course, for if they have most of it, they will value it much more than we would. And as a further bonus to the rest of us, they'll do all the worrying about it too. So we can have a great time without having to worry about the value of money at all.

Answer 4

By keep finding ways of taxing us. They invent new ideas of taxation they think they can get away with. Income tax, VAT, Airport tax, Council Rate Tax, Road Tax, Petrol Tax, Tobacco Tax and the latest to protect the environment Green Tax. Very soon I can see them updating the protection of the environment Green Tax to have a Breathing Tax to try and save the oxygen, and we like idiots accept their philosophy and pay with smiling faces.

Answer 5

If China takes a bunch of Chinese money (the Yuan) and use them to buy American dollars, that will increase the demand for American dollars and decrease the demand for Chinese Yuans. So before they did that, one American dollar might be worth only seven Chinese Yuans, but after it, one American dollar might be worth eight Chinese Yuans.

Edit: Wow. I should get best answer on this question pretty easily. All the other answers were nonsense.

Answer 6

they dont, they let private international bankers do it, and pass it off as a federal thing, like in america, the federal reserve actually loans our government every dollar in circulation with intrest..... dont ya wish money was still backed by gold and silver.... now it is just a number in a database that determines what car you drive, what city you live in, and if you can even eat tonight..

YAY federal reserve... land of the FREE..... if you can pay for it

Answer 7

With interest rates, fundamentals, and policies.

The USD is right where the neocons want it, 66% devalued from 7 years ago.

Answer 8

because we let them

through banks and central banks, and behind them are the Rothchilds, and other rich people who have controled money for generations...

Answer 9

with calculators