"Why" reason the country does not print large amounts of money
Money is indeed a very important need for many people. Even though people say money cannot be taken to death, but without human money, nothing can be done.
Poverty is everywhere. Almost all developing countries in the world experience this one problem. Poverty has become a homework for each country to be resolved. Poverty in a country is always synonymous with money, people are said to be poor when the person does not have a certain amount of money. Then why does the government or country not print as much money as possible and then distribute it to the poor? It feels like the problem is over.
Why does a country not print as much money as possible?
If you read the news about accumulating state debt and a very large poverty rate, it might occur to us "what if Indonesia prints money at will, to pay off the country's debt and eradicate poverty or return the lost corruption money". Right?
Well, if the government of the Republic of Indonesia prints as much money, all the people can rain money. The question arises, who wants to be tired of work while there is already a money guarantee for today and tomorrow. Well, if so who wants to work as a farmer even though the money is already in hand?
For example, no Indonesian people want to be farmers. Then what do we want then while the staple food comes from the agricultural sector? The result will be inflation, namely the increase in the price of goods on the market.
The ratio between the money printed and the amount of money in circulation is one way to determine the value of money. Therefore, if the money in circulation is added but the guarantee is not added, the value of money will decrease (inflation). As a result, if it is usually Rp. 1,000 can buy x items, after the money is inflated Rp.1,000 only when buying 1/2 x.
In other words, the amount of money is large, but the value does not exist, if there is no value then no other country will accept our money. in the end the debt will never pay off.
So this is the reason why the government cannot arbitrarily print as much money: because money is printed as much as possible, traders will always raise prices. After all, they thought. who bought more money than before
This effect keeps repeating like a vicious circle so that most of the price of goods will experience price increases even though the goods are exactly the same as before. This is seen as a fall in the value of the currency where the exchange rate of money against goods falls (because the price of goods rises).