Why can t the state get rich by issuing money in large quantities

Money is just an instrument and has no value in itself. If there is too much money, then the money is not money, it is worthless, because everyone has a lot of it. Correspondingly, they buy a lot less for the same amount of money.

Whether you are rich or not is not just about money. Look at the equivalent value of money to money. Yes

The country's currency can only be used to make low pressure, otherwise the issuance of paper money will exceed the actual demand in commodity circulation and the phenomenon of currency depreciation caused by inflation is likely to cause an economic crisis, for example, this is like the original hundreds of thousands can buy a house, after the currency depreciation, hundreds of thousands can only buy a few eggs concept, you say that a large number of currency issuance is rich or poor.

For example, if a country has nothing, there are only 100 eggs, and the amount of currency in circulation in this country is 100 pieces, then the ** of eggs is 1 piece. If the country issues an extra 900 pieces of currency, then the ** of the egg becomes 10 pieces. So, there is no getting rich.

I'm dizzy. If, as you say, is there a distinction between rich and poor countries in this world?

There is a limit to the amount of currency issued by a country, which can change flexibly as economic conditions change. Too much issuance will cause inflation; Too little leads to deflation. I don't need to tell you how serious the consequences of these two are.

Then why don't you get rich by printing your own RMB!?

The situation is much the same as your question.

After it was manufactured, it was made by people who would make money, do you say it is useful?

Productivity (which determines the total amount of goods) determines the amount of money issued by a country. If the country's money-issuing institutions issue more money, and there is no corresponding increase in productivity, that is, there is no corresponding increase in the number of goods produced, then because of supply and demand, more money will be used to buy goods, and the currency will be devalued in the international view.

Money is just a form of controlling the country's economy, like wanting to enrich the treasury, one way is normal taxation and so on, and the other way is printing money. The second approach is because productivity does not develop commensurate (the quantity of goods does not grow accordingly).

The money in the hands of the people is worthless, which means that the second method will make the people rich, the people will be poor, and then the people will not be able to buy things, which is not conducive to the development of the economy (not conducive to the increase in commodity production). Therefore, they all strive to ensure the stability of the appreciation and depreciation of the currency issued.

In order to make the country rich as a whole, it is necessary to ensure the development of the economy, and after economic development, more commodities will be produced, and more commodities will be bought with less money, and the currency will appreciate. Then, in order to ensure the balance of imports and exports, some money will be printed and circulated in the market, so that the currency does not appreciate too quickly.

Hello, the large issuance of currency by the state is called currency issuance. Currency issuance refers to the issuance of a large amount of money by a bank in a certain period of time and in a certain way to meet the needs of social and economic development. Currency issuance is an important monetary policy, which can change the amount of money, affect the value of money, and thus affect the development of the economy.

There are many ways to issue money, the most common of which is to increase the amount of money by issuing new currency, that is, issuing additional currency. The other is by reducing the withdrawal of currency, that is, reducing the issuance of currency. There is also a way to maintain the amount of money, that is, to maintain currency issuance.

The purpose of currency issuance is to meet the needs of social and economic development and to improve people's living standards. Currency issuance can promote economic development, improve people's living standards, improve the social and economic structure, increase employment opportunities, improve currency circulation, increase currency value, improve currency circulation, and promote social and economic development.

Currency issuance is an important monetary policy, which can change the amount of money, affect the value of money, and thus affect the development of the economy. Therefore, currency issuance is an important monetary policy, which must be coordinated by the first and first banks, scientific research, and reasonable arrangements in order to play its greatest role.

1.Where currencies are used is not controlled by the issuers, and the Federal Reserve, for example, cannot prohibit Apple from taking dollars earned abroad and using them back home.

2.The growth of monetary aggregates must be commensurate with the growth of GDP and the growth of foreign consumption and foreign exchange accounts, for example, if the growth of GDP and foreign exchange accounts is 8%, then it is more appropriate to raise the growth of monetary balances by 8% to 15% in a broad sense. Deviations from this range too much can lead to deflation or severe inflation.

Does the massive issuance of currency by the state cause inflation?

Causes of Inflation: Commodities do not grow as fast as money, so the state issues a large amount of money, which causes inflation.

Won't China get richer if there is more currency?

There is a lot of money, but there is no commodity, so what will happen to the rise of commodities will affect the amount of money issued?

When it is time to adjust the interest rate.

The kind of money you are talking about is only a lot of money in name, and the amount of money issued is limited by market demand, and exceeding the upper limit that the market can bear will of course affect the market of money**, that is, internal inflation and external exchange rate depreciation.

Currency depreciation and price conditions caused by the issuance of paper money exceeding the amount of money required in commodity circulation. Inflation is a socio-economic phenomenon peculiar to the circulation of paper money.

The reason is that paper money is a pure monetary symbol, which has no value, and only performs the function of a means of circulation in place of metal money; The issuance of banknotes should be limited to the amount of metal money needed in circulation, if the issuance of banknotes exceeds the amount of metal money needed in circulation, the banknotes will depreciate, and the price will be **. Therefore, the currency depreciation and price caused by the excessive issuance of banknotes are the direct cause of inflation.

Features Paper money depreciates sharply due to excessive issuance. In the case that the amount of metal money required in circulation has been determined, the more paper money is issued, the less metal money can be represented by the unit banknote, and the greater the depreciation of paper money. The degree of depreciation of paper money, i.e. the rate of depreciation of paper money, is calculated as follows:

Banknote depreciation rate (1) 100 For example, the amount of metal money required in circulation in a country at a certain period is 10 billion yuan, and the actual amount of paper money issued is 20 billion yuan. Only economic development affects currency issuance.

Yes, the large issuance of money by the state will cause inflation - because the total amount of social value does not change much, and it is basically the same in the short term; And money is the manifestation of the total amount of social value, that is, the total amount of money value is roughly the same as the total amount of social value. Therefore, the state issues a large amount of money, which leads to a decrease in the social value represented by the unit of currency, which is also known as currency depreciation. After the currency depreciates, the amount of money needed to buy the same item increases dramatically, which is also known as inflation.

The national bank is the main body of the currency circulating in China's market, and it is also the main body that regulates the amount of circulation. When the total amount of social value grows with the development of the economy, more money** is needed to keep the social value represented by the unit of money basically the same over a period of time and avoid deflation.

1. What is "value"?

To discuss economic issues, we must not leave the real economy. Production and business activities are the most basic activities of human beings and the foundation of human survival. The ultimate purpose of production and business activities is to provide people with a variety of consumer goods and services, and production is creation.

value", people's lives are constantly consuming "value".

A country is made up of many enterprises, and the result of the operation of enterprises is the production of "value", and the "value" created by labor is the part of the company's product and labor income minus the cost of purchased goods (raw materials, machine wear, power, etc.). The state adds up the "value" created by the country's enterprises in a year to the total value of the country in a year, and distributes it as workers' wages and investors' profits, and the state's taxes. And the workers, the investors, and the ** get this money always have to be spent, which constitutes the total consumption and total investment of the country in this year.

2. What is "currency" issuance?

As mentioned earlier, the total amount of value created by the labor of the state in a year is divided between the wages of the workers, the profits of investors, and the taxes of the state. The wages of employees are directly transferred from the enterprise to the personal account of the employee, and the dividend of the investor is also transferred to the personal account of the investor, such as the dividend of the purchase, which is directly transferred from the enterprise to the account of the shareholder, and the tax is directly transferred by the enterprise to the account of the tax department. They are kept in the bank until they are not consumed or used as other investments, which is called the "issuance of money".

If the deposits in the bank are to be withdrawn from the bank, the deposit is reduced and turned into cash, which is now called the amount of broad money m2 = cash + savings deposit.

These currencies are spent when they are consumed or invested. In the actual presence of banks, the bank is also used for lending is also an indirect investment.

3. Conditions for the stability of the value of the currency.

The total "value" created by a country is distributed to the wages of workers, the profits of investors, and the taxes of the state, and they all have to be spent, which becomes total consumption and total investment.

The condition for the stability of the value of money is that the "value" created is equal to the "value" consumed. Breaking this equilibrium is the reason for the fluctuations in the value of currencies. Loopholes in the issuance of currency can lead to an inflated amount of money, which consumes more value than it creates, leading to currency depreciation and inflation.

Inflation, the supply of money is greater than the demand for money, so the price **, the purchasing power of money decreases.

Deflation, on the contrary.

Amount of money = number of commodities *** number of commodities to be circulated Velocity of money circulation.

Paper money is credit money that has no value in itself, and the state gives it unlimited solvency. The amount of credit money in circulation can affect economic development, and the issuance of currency has become an important means of regulating and controlling the economy.

Low inflation can be good for economic development, but if too much or too little money is issued, it will become hyperinflation or deflation, which is not good for economic development.

For example, in Zimbabwe now, you have to carry several sacks of money to buy something, which is very serious inflation.

More issuance will cause currency depreciation and cause inflation, and inflation, currency depreciation will shrink national wealth, less issuance will cause currency deflation, which will be more serious than inflation, everyone will spend less money, enterprises will make less products, and workers' income will decrease, and then a vicious circle.

If there is too much money, there will be severe inflation, currency depreciation, and there will be insufficient circulation, deflation, which will not be conducive to employment and economic growth.

Excessive issuance is prone to depreciation, causing inflation. Too little issuance will hinder circulation and affect economic development.

Because too much money is issued can lead to inflation. Too little will lead to the country's economic development not being able to grow.

If there is too much issuance, the currency will inflate and the money will depreciate.

Excessive hair can cause swelling.

Just look up what inflation and deflation mean.

How is the money made by the state distributed to the private sector?

1 Direct investment through the bank or **. For example, taking out a loan to buy a house, the World Expo Asian Games. There are many ways, and these two are the main ones.

How did the rich make money in the first place?

2 I think you're talking about how the rich get rich, or where do they get the money to get rich? Most of the rich people are hard-working and rich, and many of them used to be wage earners, or small owners of family workshops. Of course, there are exceptions, and we will only say some legitimate ones here, and it is inconvenient to say more about others.

Are there a lot of rich people doing business? So the money of the people who do business is getting it in **?

3 Why do you want to say that the rich have so much money? Why can't they run out of money? Why can't we be like them?

The money of people who do business is, a lot of money comes from banks. Many wealthy people who do business are also in debt. These problems involve a series of issues related to social fairness and the system of making and searching for Lidu, and it is inconvenient to talk about them here.