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