Why Government Prints a Limited Amount of Currency ?

in #mgsc6 years ago

HIGHLIGHTS

Why government of every country prints a limited quantity of currency ? Why government shouldn't give lots of money to country's each dweller ? Or why government shouldn't decide to make every dweller millionaire or billionaire ? Infect government has full rights to do this.

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LET'S LEARN FIRST THAT.. WHAT IS CURRENCY ?

Currency means that something in which you get something in return. If we can not find anything in exchange for that currency , then what is the value of that currency ?No matter how much money we have.

What happened in earlier times if someone has water and you have milk and you want water, you could exchange it then the people of the currency started to accept this currency and now you could buy anything with the help of this currency.

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WHY ?

So why does not the government divide all the money in a lot of quantity to all the dwellers of that country ? So that there is no poor while the government has these rights ?

IT WAS HAPPENED !

It was like this in 2001 in Zimbabwe who were the presidents of that place.. why they thought that a lot of notes should be printed and distributed among the people and every Zimbabwean citizen had become millionaire and now everyone had money a lot then it's side effects happened that if you had to buy a biscuit packet then you had to take a lot of money , that means if you have a million money , can buy a pencil only.
And government did not stop there , he churned out the money till 2008 even a million, billion and trillion notes. And the result was that there was a lot of money in the market but if there was no goods then it's value would also be in trillion had reached.

FOR EXAMPLE:

If someone is a farmer then why would he do the work if he has a lot of money ? If everyone has lots of money why would he do that job ?Why would you go to the Office and why would i able to work ?
Why we earn money ? So that we can buy things or goods and services, and hence the demand value in the market will increase. And due to lack of goods and services the price will increase.

REASON

Because of this the government of the country it is the currency printed within a limit. So how much is this limit ?
This is so much that GDP(Gross Domestic Product) is acceptable to any country in any country, the services are supplied or goods manufactured in any country in any one year and in what country is worth it will remain in currency rotation accordingly, this rule GDP's. That's why the money is printed as much as the services or goods are available in the country.

If someone tells you in the future that i'll give you free a piece of notes you have a lot of money in it,you should tell him but what will i do with them ?

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Great Article. good information

thanks for appreciate

Wonderuful and usefull post

thanks for appreciate