Why money can t be printed without limits

The printing of banknotes is not arbitrary. The state should make a comprehensive analysis, judgment, and decision on whether or not to print currency on the basis of the recent gross national product and the statistics of the People's Bank of China on the nation's money stock.

How much currency is printed? Those who have studied finance probably know the following formula:

The amount of money required in circulation = the total amount of commodities The number of times of money in circulation = the number of commodities The level of commodities The number of times money is in circulation.

Currency represents the material wealth of the society, in the case of no increase in the material wealth of the society, no increase in the gross national product, and no new accumulation, the issuance of money exceeds the amount required in circulation, which will cause currency depreciation and price **, which is called inflation.

In my opinion, money is the embodiment of labor, and when I pay for your things, I pay for your labor, and when the United States owes a huge foreign debt, the whole world pays for labor for the United States.

The labor force of the whole society must be certain, and the natural resources developed and utilized must grow step by step, and of course the currency cannot be issued indefinitely, or it will not cause chaos and lose the meaning of the existence of the currency.

If there is no limit to printing, the money will become wallpaper.

However, it is okay to have a good time here. It's not even pasted wallpaper.

There is no limit to printing money, is it useless to ask for money, money is worthless,

Prone to inflation.

Inflation 1) Definition. Inflation refers to a persistent and significant level of generality. The degree of inflation is usually measured in terms of the rate of inflation, which is defined as the percentage change in the general** level from one period to another.

The ** here is not a single certain good or a certain service, but a group of goods and services that can reflect the overall level of social goods and services.

2) Causes. The causes of inflation are summarized in the following three scenarios:

Demand-pulled. Demand-pull inflation, also known as excess demand inflation, refers to a sustained and significant increase in the general ** level caused by aggregate demand exceeding aggregate supply. This type of inflation is in turn figuratively described as "too much money chasing too little goods".

Cost push. Cost-push inflation, also known as supply inflation, refers to a sustained and significant increase in the general level caused by the increase in supply-side costs in the absence of excess demand.

Structural factors. Structural inflation refers to the persistence of the general level only due to changes in economic structural factors in the absence of demand pull and cost push. However, because on the one hand, it is not easy for the modern social and economic structure to transfer the factors of production from backward sectors, declining sectors, and closed sectors to advanced sectors, emerging sectors, and open sectors, and on the other hand, backward sectors, declining sectors, and closed sectors require that they be on par with advanced sectors, emerging sectors, and open sectors in terms of wages and development, the result will be a general level.

3) Impact. The impact of inflation on economic life varies depending on the type and extent of inflation itself, as well as people's expectations. Once inflation occurs, it will have a complex impact on the output, employment, and income distribution of society.

In particular, the impact of inflation on the distribution of wealth and income in society and the resulting socio-political consequences are issues that every country must take seriously and deal with prudently.

Every country in the globe can print money, so why not print it in large quantities? The consequences are severe!

Every country can print its own money, so why can't you print as much as you want? Knowledge.

The amount of money corresponds to the output of goods, which can also be simply understood as GDP.

For example, if there is 100 yuan circulating in the market, it corresponds to 100 yuan of goods, and 100 can buy 100 goods. If 100 more is printed and the circulation is 200 oceans, then the original 100 oceans can only buy the original 50 goods, which is inflation. The people's money is worthless.

From another point of view, if the people originally had 50 yuan in their hands and the government had 50 yuan, and now the government has printed 100 yuan more, then the corresponding goods will become, and the people can only buy the original 25 yuan of goods, and the government can buy 75 yuan.

Do you know why inflation has been so strong in recent years, over-investment, the need for money is just a simple algorithm, and of course there are many other factors.

The market circulation of money has certain regional restrictions. Even if you trade with another country, it will not be a cash transaction, and it is usually through online banking. However, the currency of one country or region is not liquid in another country, and the domestic currency paid to other countries will eventually be transferred from foreign accounts to domestic accounts, and eventually flow into the country.

There is a certain proportion between the circulating currency in the market and the total amount issued, which means that no matter which country or region the currency you issue is used to pay for orders, it will ultimately affect the currency circulation market of your country.

This does not apply to international currencies: such as the US dollar, Japanese yen, euro, etc. These can be used as foreign exchange reserves by other countries, but paper money cannot be issued arbitrarily for the sake of the stability of the international market economy.