Currency

Why can't you become rich by printing money?
Many people may think that why no one becomes rich by printing money at will? There are many people who have not thought about this issue. But the matter is not so simple. Behind this is the complex calculation of the economy.
Suppose a poor country changed the face of the country by printing huge amounts of money, building huge bridges, repaying foreign loans and other development works. Is there a problem? Zimbabwe is a real example of the answer to this question. But why this situation? Zimbabwe's economy has not been good for many years. But in the end it got worse since 2006.

Former Zimbabwean President Robert Mugabe has decided to print a large amount of currency to meet his financial needs. He ignores all other economic sources for this, so what has happened since then has happened. There is a lot of money in the hands of all the people of the country. But he is getting very little with the money. Huge amount of inflation is happening in the country every day. This rate is so high that in 2007 it reached 1.5 million percent where, in our country, inflation is currently only 5.5 to 7.5 percent. Then, helpless, the Zimbabwean government was forced to cancel its currency. Instead, Zimbabwe is now forced to trade in US dollars and other European foreign currencies.

But the country has a problem with printing more money, why? Because the printing of currency has to be consistent with the total wealth of the country. When money is printed more than assets, commodity prices go up.
Suppose there are 10 jackfruits in a small country. That country prints 20 rupees a year. Suppose each jackfruit costs two rupees. Then the total wealth of the country and the money in hand became equal or balanced. The next year the country printed 40 rupees. However, those 10 jackfruits were found as an asset. Since there are no new resources in the country, only 10 jackfruits were allocated to buy that 40 rupees. In other words, the price of each jackfruit became four rupees or double - the price of goods increased. In this way, the price of goods in the country will increase if extra money is printed (although the price of goods would have remained the same if 20 rupees had been printed). Printing extra money reduces people's purchasing power. The price of money also goes down. This is called inflation.

It is a very complicated process to determine the exact amount of money to be printed every year so that there is no extra money in the country. If this calculation is not done properly, the inflation of the country may increase. And so producing the right amount of money is crucial. There is no question of printing money at will.