Why a country can't print as much money as it wants?

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When a country falls in economical crisis, many of us think why they are not printing money to solve the problem?....

A country has full right to print currency. But to eradicate economical problems it's not a good idea to follow.

It will not solve the problem rather it will make it even more complex by causing inflation. As a result price of the products will raise and the value of currency will decrease.

So there is a standard for indicating how much currency can the country print.

Generally the central bank has permission for printing. They have gold, silver and other wealth in reserve. And they can print currency that's value is equal to this reserve.

So, to overcome financial crisis a country needs not to print money. They just need to increase production.

But there's a country which can overcome this by printing money. It is the USA! This is because most of the international traders prices their products in dollar. So the extra dollars they print come out of the country and the country's economy remains stable!

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Comments

Wow nice article.... Its most important knowledge for everyone.... Thanks for sharing

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4 years ago

welcome dear ❀

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4 years ago

Wow nice your article, nice your explanation. just keep it up 😍😊

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4 years ago

thank you😊....your inspiration will make me to continue ❀

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4 years ago

Wow I always knew that a coin couldn't just keep printing money, its simple economics it always leads to inflation. But I didn't know the US economy can absorb it. Thank you for teaching me this today

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4 years ago

you are welcome ❀

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4 years ago

Nice one πŸ‘Œ I always wonder why a country could not print enough currencies to satisfy it citizens until I come across this article. Keep it up πŸ’ͺ

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4 years ago

thank your sir. your comment is very inspiring for me. thanks for your support 😊

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4 years ago