Why can t a country issue money casually

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.

This problem is a problem of economics, and the analysis of politics in the first year of high school shows that this is because of the requirements of economic laws, and the amount of money in a certain period of time is determined by some objective laws, not artificially. Of course, the state can issue currency at will, but when the state does not issue currency at will, because issuing currency at will bring a series of problems. If you want to know the specific instructions, it is recommended that you read the political book of the first year of high school (easy) or you can also read the Marxist political economy (a little more difficult).

Parsed very clearly.

Make an extreme assumption.

For example, if you go to the mining and find a bunch of diamonds of huge value, which is as much as 1 trillion yuan, and then sell them in the society in exchange for 1 trillion yuan in cash, then the national economic system will have 1 trillion less currency.

If the bank does not issue new money or increase the supply of broad money through other means, then due to the decrease in money, it will lead to a price increase, and the bank will use monetary policy to increase the money supply in order to stabilize prices.

**The new currency issued by the banks will flow into the hands of residents through loans from the banking system.

The economy itself is a cyclical process, money is only the carrier of circulation, and its value is the oxygen it needs. Just as oxygen needs to be transported by human blood cells, money is equivalent to human blood. In the case of hypoxia, increasing the blood does not solve the problem, the correct approach should be oxygen.

On the contrary, increasing blood volume disrupts the normal circulatory function.

The amount of money issued is determined according to GDP (Gross National Product)!! That is to say, there should be a corresponding ** for how many products are produced, and this ** is manifested in reality is currency!!

If there is less, there will be deflation (90s)!! If there is more, there will be inflation (for now)!!

The more money is issued, the more money is circulating in the market, which will cause a series of problems, such as price inflation.

If there is less circulation, there will not be enough money circulating in the market, deflation, and so on.

So the currency issued for a certain period of time is limited.

Take the renminbi, for example.

1) Propose the issuance plan of RMB and determine the annual currency ** amount. Every year, the head office of the People's Bank of China shall propose a currency issuance and withdrawal plan in accordance with the country's economic and social development plan, and organize and implement it after submitting it for approval. This includes the design, printing and storage of bills.

2) Approve the monetary volume plan submitted for approval by the People's Bank of China.

3) Carry out the allocation of issuance. Issuance is the currency to be issued that is held by a bank for the state. It is the preparation of currency issuance, does not have the nature of currency, is kept by the People's Bank of China at all levels that set up the issuance library, and the head office is in charge of it, and the right to use the issuance of the first belongs to the general treasury.

4) Daily cash receipt and payment in the general banking business library. The currency issuance of the renminbi is mainly realized through the cash receipt and payment business activities of commercial banks. After the commercial banks transfer the issuance of the People's Bank of China to the business treasury, and then pay the cash cashiers to all units and individuals from the business treasury, the RMB banknotes will enter the market.

This is called a "cash drop".

At the same time, all commercial banks must obtain a certain amount of cash from the market every day, and when the inventory currency in the business treasury exceeds the prescribed limit, the excess part must be sent to the issuance treasury for safekeeping. This is called "cash return". The process of currency from the issuance library to the business library is called "outbound", that is, currency issuance; The process of returning currency from the business library to the issuance library is called "warehousing", that is, the currency is withdrawn.

1. Adhere to the principle of economic issuance. Adhering to the principle of economic issuance, the draft bridge is issued through the channel of bank credit in accordance with the situation of the national economy, in accordance with the actual needs of commodity circulation, and this is the most basic principle of RMB issuance.

2. Adhere to the principle of planned issuance. The so-called planned issuance means that the issuance of currency must be incorporated into the entire country's key Qingmeng plan system and handled according to the plan to ensure the stability of currency value and prices.

3. Adhere to the principle of centralization and unity. According to the provisions of this article, the RMB shall be uniformly printed and issued by the People's Bank of China; Article 20 also stipulates that no unit or individual may print or sell tokens and coupons in place of RMB circulation.

Hello, dear, can the world currency only be issued by developed countries? Yes, it can only be issued by developed countries, and the country that issues this credit currency must have strong economic strength and occupy an important or dominant position in the international economic field. Only when a country occupies an important position in the world's commodity exports and capital exports, and has extensive financial ties with other countries, will its credit currency be widely used in the international community and smoothly accepted.

This credit currency must have considerable stability. And since any credit currency itself is worthless, in order to maintain its stability, it must be linked to **, that is, it can be exchanged for ** at a certain exchange rate under certain conditions. Therefore, the countries concerned must have sufficient reserves to guarantee the stability of their credit currencies.

Although a country's currency can be used as a means of payment between countries with close economic ties to each other, it is still unreasonable for it to be officially qualified as a reserve currency in the world, and it is not foolish that it must be recognized by all countries, which must be achieved through international agreements. If the above conditions change, it can no longer function as a world currency. Therefore, unlike **, a country's loss of currency as a world currency is conditional, unstable, and contains contradictions and crises.

This is exactly how history has developed.

In May 2015, Denmark** unveiled a series of motions that included a plan to abolish the law that stores could only accept cash, and instead accept mobile payments and bank cards. Electronic payments are already the dominant ones in Denmark.

The whole country is trying to move away from paper cash, and bank cards and mobile payments have become the dominant payment methods in Denmark.

Electronic money has replaced cash, and electronic payment has become a common way for Danes to spend money: just put on a credit card and shout to take a ride, travel and visit the mall. Even the elderly in Denmark are keeping up with the trend of the times, according to data from Danske Bank, Denmark's largest bank, the elderly in Denmark prefer to pay with credit cards or smartphones, and the oldest mobile payment user is 104 years old.

The state has a large base of rent, and it is not allowed to make money at will and without restrictions.

The issuance of the renminbi belongs to the state's macroeconomic regulation and control, and it can be printed at will. The details are as follows:

Currency issuance has a double meaning:

First, it refers to the flow of currency from the issuance library of ** bank to the society through the business library of each commercial bank;

The second is that the amount of money flowing out of the bank is greater than the amount withdrawn from circulation.

The People's Bank of China, as the first bank, holds the right to issue national currency, also known as the "issuing bank.""。

The specific issuance of RMB is handled by the issuance ** vault set up by the People's Bank of China (hereinafter referred to as the issuance vault).