sukkot:
its a good question. you can do it if you are a country that is not linked to any other countries in the world and you have everything you need. like if you found a colony in mars and took all your people there you can print all the money you need to stimulate people to be more productive and to utilize under-utilized resources such as un-used lands. however in a global economy where everybody is linked up in commerce then you will be cheating other countries if you are just printing anyhow because you can print enough to buy everything in another country - so that is OJORO. so when global economies are linked you have to monitor every country so that they dont print more than they should. each country is capped at how much they can print. this is why all the central banks of the world are ran by the rothschilds. they are the ones who put cap on countries as to how much they can print

Exceptional lie. GOVERNMENT BONDS are LOW RISK INVESTMENT because a country can print to pay at maturity.There is no cap on volume of currency that the Central Bank of a country can print. Exception occurs only when a country belongs to regional economic union like that of EU, which means the union is using UMBRELLA CURRENCY(EURO). Which means members cannot print money at her own will because it's going affect the general value of the currency. For example, Greece is using EURO.The reason why she cannot pay creditors is because she cannot print at own will.

suyamasta:
Was there any human born with money in his/her hand? Have you read how Dangote was helped by his uncle with a loan which he used and paid back now the richest black man? I did not say CBN should print money for all Nigerians! The point i am making is Printed money can be channelled toward productive activities/industries which creates meaningful employment, this can be done successfully if the CBN takes care to know the right amount of money to print to avoid oversupply!

As Nigeria decides to print more money for productive ventures, workers building these ventures are paid salaries, and workers employed to work as staffs are also paid, at the end of the day: they will save some, buy basic necessities with some, and invest some.

It still increase the volume of money in circulation.
#myopinion and stand to be corrected.

Puresolutions:
@PentiumPro ithe forum is a mixed audience and you need to permit people you are in more aware of to ask questions.

Talking out debt monetization and printing money and the effects.

In what is called QQE Qualitative Quantitative Easing

I am responding because you are the only person that know its very possible in modern economics, but there are a lot of proof my friend. Currently, US, UK, Japan and the entire European Union are printing money to stimulate the economy, it is a modern economics model called Quantitative easing (QE).

In fact, US started with $40 billion a month in 2012 and later increase it to $80 billion, that is the reason why they were able to recover from recession faster. UK and Japan are currently doing the same, while the EU introduced a LTRO (long term refinancing operation), a model that allow people to borrow money with zero interest. European Central bank (ECB) print, give to the people to invest in the economy which allow them to create jobs and pay taxes to the government, without having to pay any interest on the money, only the principal is returned. Mind you all these countries are struggling with deflation right now, I mean they can't even get their inflation to just 2 percent target. That is how effective QE is.

QE is different from just printing money endlessly, but it follows a unique pattern which allows the central bank to buy financial assets from commercial banks, in Nigeria it will be treasury/bond, hence raising the prices of those and lowering their yield-return (inflation control). Also, Nigeria Central Bank can stimulate the economy by printing money to create new jobs and generate more revenue from taxes with reduced interest rates, I am talking about 5 to 10 percent not the current 30 percent.

Friends, it is very possible as you can see. Most of our leader's models are outdated whereas economics is like your car, there is always a new working model. Japan and the EU just started negative deposit rate, watching to see how that turn-out. Georgry

Printing money comes @ a loss.to print 50 naira might come @ a cost of 500 or 300 naira.for example

Money is true sense is anything backed by value, the only reason paper money (currency) is valuable is because it is backed by a sovereign government, who can promise to fulfil obligations, that us why when a country is at war, people don't hold the currency they instead buy keep lands, properties , Gold etc. . Printing more money does not translate into value, B if there are 10million naira that can only but N10million worth of food. If you print an extra N10million , while food(and other valuables ) remain the same what you have is people buying the same food for twice the price. The currency looses value, in the same vain, once you have more values e.g food, and same amount of money , the currency strnethens. Abi na money we go chop, once everybody has money ,who goes to farm, your driver has same money as you, so, for you to hire his services you must pay more than he earns.

Atk1nson:


Due to weight of western sanction and the government's expropriation of farmlands from experienced white farmer, Zim's agric base collapsed. However it maintain the huge volume of money in circulation because it wouldn't own up to the fact that the country is poorer.

The consequent effect, is a lot of money pursuing few goods, making the money less valuable and pushing prices up.

Yes na so!

They should produce it in excess for social amenity like good roads , stable power supply etc.

Hisduchess:

buh can't I take the money angry travel to another country to spend it when it has been changed.sorry pls explain to me I hated economics during my secondary school days thus I went for sciences. thanks in advancr

to be candid op, I've always nursed this thought. I didn't av a clear understanding. I also disliked economics. I still don't like it dat well.

herbie27:
As Nigeria decides to print more money for productive ventures, workers building these ventures are paid salaries, and workers employed to work as staffs are also paid, at the end of the day: they will save some, buy basic necessities with some, and invest some.

It still increase the volume of money in circulation.
#myopinion and stand to be corrected.

Yes thats why we have the CBN they can mop up excess money and destroy that money using different economic instruments, The most important thing here is that money would have exchanged hands and people would have been lifted out of poverty, and productivity would be increased!

PentiumPro:


You write very good English but yet very deficient in basic economics

Nobody is an island of knowledge. There is no need for the insult.

kizyalex10:
Printing money comes @ a loss.to print 50 naira might come @ a cost of 500 or 300 naira.for example

No thats not true please except you are printing outside your country!

see how much it cost the US to print the dollar
$1 and $2 --- 5.5 cents per note
$5 --- 10.9 cents per note
$10 --- 9.9 cents per note
$20 and $50 --- 10.6 cents per note
$100 --- 14.3 cents per note
Source: https://www.federalreserve.gov/faqs/currency_12771.htm

https://www.nairaland.com/3027710/see-how-much-it-cost

tsdarkside:


hahahahahaha.....you are clueless...america is already doing it!!......what you think..??....

That's why the US dollar has rapidly lost it's value and purchasing power over the last few years. The Federal Reserve has engaged in "quantitative easing" which they believe would stimulate the US economy, but has in fact, resulted in inflation.

fiizznation:
Yes they do have exchange rate. Every currency has its exchange rate. But don't forget, my first answer to this thread was directed at the op's question; which was why can't we produce more currencies, and which I used Zimbabwe as an example. Honestly as of today, I don't know if the Zimbabwean dollars is still that weak and utmost useless as it used to be about 2years ago

thanks plenty for explaining to me cos I have kinda tried using internet to solve this puzzle buh I still gets more confused. wish u am seeing u life now so that I can get well cleared about this topic.buh thanks for ur help so far I appreciate

CFCman:

That's why the US dollar has rapidly lost it's value and purchasing power over the last few years. The Federal Reserve has engaged in "quantitative easing" which they believe would stimulate the US economy, but has in fact, resulted in inflation.

No, that is why the US dollar is the most appreciated currency in the world for the past three years. It is hard to explain all these if you are not in finance/economics.

Imagine if minimum wage was N1m. You won't expect to see coke selling for N60. We might not even have N500 notes again.
* Point is more money and less goods= inflation.

I have asked similar question in the past but did not get satisfactory response. Even now, all the comments I have read so far are not technically convincing. Pls Economists in the house, I need response from the economic point of view.

theEYe21:
See this olodo!

Ok genius,can you pls explain why to him?

Did this poster do any form of Economics at all?
I know very well that we were taught INFLATION in secondary school and its causes.
We were also taught everything about the law of demand and supply, GDP, ECONOMIC GROWTH, PRODUCTION, bilateral trade etc

Now if anyone who attended a secondary school is asking this question, I think ur school fees was a total waste.
Secondly, since you have access to the internet, why can't you make use of ''google'' to educate yourself more free of charge!

Chaiiii..

Caseless:
it seems you believe everything u read. Abacha that kept the naira at N60 to dollar for many years is d one you are accusing.

bro u are right .... U can't compare that time to now : he left it @60naira u ar right but u forgot that dollar was not stagnant also or u think u.s.a ain't moving forward ! The u.s of today is not of yesterday ... But have u ever read articles about abacha? If no ! U won the argument thanks

PentiumPro:


You write very good English but yet very deficient in basic economics

ITK. You are a guru in all subjects ba

Nusaf:
I have asked similar question in the past but did not get satisfactory response. Even now, all the comments I have read so far are not technically convincing. Pls Economists in the house, I need response from the economic point of view.

The ans is very simple!
Let me explain to you like a Primary 1 pupil.
I believe you must have heard about the word INFLATION.
A country is said to be experiencing INFLATION when the value of its currency is very weak.
Thereby making it so useless that a big amount of money will only get something small.

For instance Imagine you buying a loaf of bread for 20k, enter transport from Obalande to CMS 30K
Now this thing called INFLATION happens when you have too much money in circulation chasing few goods.
In order words, when you prints so much money without external earning through export you are invariably inviting INFLATION.

It is not what any country should pray for. incase you need more explanation do let me know. THANK ME LATER

Because the cost of Printing quality money is more than the money itself. However, too much money withOUT
goods and services leads to inflation, Zimbabwe is an example

Nusaf:
I have asked similar question in the past but did not get satisfactory response. Even now, all the comments I have read so far are not technically convincing. Pls Economists in the house, I need response from the economic point of view.

True,most responses thus far are not explicit and explanatory enough.
I will write a comprehensive article on this issue soon. And as much as possible,make it clear to a layman. There's nothing bad in printing more money,but alot of things cld go wrong.
I will explain everything.

If CBN prints billions of naira and share to Nigerians. What would we like to do? Spend. Invest etc. If we invest in say, building a refinery or purchase a vessel. I'd need to buy parts from oversea since I don't have the technical/material resources. Then let's say N300=$1. What would happen? I'd return back to CBN or BDC(Aboki) to convert my say billions to dollars at the prevailing rate. Now the more Nigerians have the printed billions, the more the BDC would charge for a dollar I.e N1000=$1. That's because a lot of people are in need of the dollars, the dollar becomes scare and Aboki would jackup the exchange rate so he can have more naira for his scare dollar. This would happen until there is no more dollar available to Nigerians. Then we won't be able to invest& spend to buy especially foreign goods/assets. We'd only be able to trade locally until local goods too becomes scare and we'd have our billion naira but won't be able to buy anything with it.

The only solution is that we're able to increase our productivity and sell both locally and export to get more dollars into the economy. Once that is done we'd have excess dollars to satisfy our printed billions.
US could afford to print & bailout because it has what we call trade surplus. I.e sales from exported goods/services>spendings on imported goods/services. That is they produce more than what they consume.
Hope this simply clarify your question.

basingstoke:
Because the cost of Printing quality money is more than the money itself. However, too much money with goods and services leads to inflation, Zimbabwe is an example

Not true!

Why you call money, that is "paper money" is not actually money. Actual money is the resources a country has or the potential ability of the country to make money and attract money (investment).

If the "paper money" were to be made in excess to a country's actual wealth, it results to a false economy. The price for commodities will shoot up without increase in value. Too many people will want too many things at the same time because they can afford it. Market will try balance demand and supply by increasing price, not out of greediness but out of inability to meet demands.

so, that is a very bad idea

theEYe21:
See this olodo!

you shouldnt call him an olodo just because you know better. That's rude. Am sure there are things he knows that you dont know. It goes both ways

Trendy247:
I will like to work in d printing room for just 1 week without pay..


Modified:
I believe if I keep the over printed bundles in my possession, it won't cause inflation

.
Guy u are very very funny

sukkot:
its a good question. you can do it if you are a country that is not linked to any other countries in the world and you have everything you need. like if you found a colony in mars and took all your people there you can print all the money you need to stimulate people to be more productive and to utilize under-utilized resources such as un-used lands. however in a global economy where everybody is linked up in commerce then you will be cheating other countries if you are just printing anyhow because you can print enough to buy everything in another country - so that is OJORO. so when global economies are linked you have to monitor every country so that they dont print more than they should. each country is capped at how much they can print. this is why all the central banks of the world are ran by the rothschilds. they are the ones who put cap on countries as to how much they can print

Did you read this trash on some conspiracy theories website?

See what looting is causing

Georgry:
Hello Nairalanders....

Knowing fully that a country have the right to print money as much as they desire,and their is no limit to the quantity of money a country can print, this question comes to my mind:

Why can't a country just keep printing money to the stage that it will be enough for every body in the country to be rich...


Economist in the house your explanation is needed here.....

YOU NEED MONEY TO PRINT MONEY.

suyamasta:
Not true!

Because the cost of Printing quality money is more than the money itself. However, too much money WITHOUT goods and services leads to inflation, Zimbabwe is an example