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Nairaland Forum / Nairaland / General / Business / Why Can't A Country Just Keep Printing Money And Become Rich (51178 Views)
How Can A Person Living In Nigeria Become Rich? / Nigeria’s CBN Is Printing Money To Keep The Govt Afloat & Alarms Are Ringing. / Answer To: Why Can't A Country Keep On Printing Money And Become Rich (2) (3) (4)
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Re: Why Can't A Country Just Keep Printing Money And Become Rich by Harmored(m): 12:51pm On Jun 01, 2016 |
Abi oo hmmn smart question 2 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Kingkamal(m): 12:52pm On Jun 01, 2016 |
Hahahaha is not possible but i will try that if u vote me for presidency i promise o 2 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Nobody: 12:53pm On Jun 01, 2016 |
gebest:How?. |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Harmored(m): 12:54pm On Jun 01, 2016 |
herbie27: What's wrong if its too muchmuch |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Nobody: 12:54pm On Jun 01, 2016 |
Yes, inflation will arise when a country prints its currency in excess. However, the sure way to go about it is, for instance a country like ours can master how to print original US currency which is a tender for international transactions besides it has weight advantage against naira. Although, this is a crime, but then that will not cause inflation to us instead it will become our secret new black gold. 7 Likes 3 Shares |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by jordinsparkles(f): 12:54pm On Jun 01, 2016 |
I used to think like that but then....Nigeria oh Nigeria is still useless. 1 Like |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Samguine: 12:54pm On Jun 01, 2016 |
PentiumPro: His deficiency in Economics made him ask that question. Why not answer him instead of pointing out his deficiencies? 46 Likes 2 Shares |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by jordinsparkles(f): 12:55pm On Jun 01, 2016 |
Samguine:don't mind him, yeye. 9 Likes 1 Share |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Nobody: 12:55pm On Jun 01, 2016 |
AT OP the more you have of a scarce resource, the more valuable it is.. get scarce foreign currency and your Naira improves.. you do this by International Trade. too bad crude prices have fallen.. we can start exporting Runz Girls and Swagga-boys into Russia and Itally.. the money they will make in one month can pay subsidy for 1 month.. 7 Likes 1 Share |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by cutediva87(f): 12:57pm On Jun 01, 2016 |
inflation will be on the rise. simple |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by BrainnewsNg(f): 12:59pm On Jun 01, 2016 |
fiizznation: Thank you I have learnt 11 Likes 1 Share |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by anyicash(m): 12:59pm On Jun 01, 2016 |
Georgry:If you can only eat the paper money as your food, then let them print. |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by chiefolododo(m): 1:00pm On Jun 01, 2016 |
Eyah, it will get to a point where the money you printed will not be enough to buy material to print money again. This is called INFLATION 5 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by BrainnewsNg(f): 1:00pm On Jun 01, 2016 |
Empero1: Thats true Thank you |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by suyamasta(m): 1:00pm On Jun 01, 2016 |
PentiumPro:No no no! If you say it represents individual contribution to wealth you are wrong! the many unemployed youth who are a major part of the population then contribute nothing? |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by fiizznation: 1:01pm On Jun 01, 2016 |
Hisduchess: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 4 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by InvertedHammer: 1:02pm On Jun 01, 2016 |
Georgry:/ This is a very intelligent question. Every currency has to be backed by something of value eg. Gold. And that is the baseline value. Other indices/factors can add value or devalue the currency. This is why people are skeptical about cryptocurrencies. Also arbitrarily printing money (a devaluing factor) adds to inflation and reduces the value of the currency. 6 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by NovusHomo(m): 1:03pm On Jun 01, 2016 |
Dnuel: He also needs to learn how to use the english language. Then, and only then, can he become a Minister. |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by papabaks(m): 1:04pm On Jun 01, 2016 |
Davinex: Simple but best response |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by joey150(m): 1:04pm On Jun 01, 2016 |
PentiumPro:sadly you cannot identify very good english. I dont know about your economics 2 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Olutola88(m): 1:04pm On Jun 01, 2016 |
Most of you laughing @ and bashing OP don't even have an inscive understanding of how the whole thing works. If you really think the OP's question is stupid, come out and give us an insightful analysis of the whole process. We need facts here, I mean real life implications and not textbook implications. I want to learn new things 17 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by nobullshit(m): 1:04pm On Jun 01, 2016 |
My brother, the current president of Zimbabwe have already tried it , he even had 1Trn. Zim. dollar in circulation and that never helped things out instead, it pushed Zimbabwe into more economic trouble than they used to be in. Forgive anyone who calls you name over your asking this question, we blacks are behaviorally versatile. 4 Likes 1 Share |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by suyamasta(m): 1:05pm On Jun 01, 2016 |
chiefolododo:Tell that to Obama and see! the US used this approach in a more systematic manner, its all about proper planning and avoiding excessive printing! |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by macaranta(m): 1:07pm On Jun 01, 2016 |
Op do you want to buy 10mb for 50 billion naira? 9 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Opeade939(f): 1:07pm On Jun 01, 2016 |
Really? Metallurgist: 1 Like |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Nobody: 1:07pm On Jun 01, 2016 |
Harmored:If the quantity of money in circulation is too much, it will lose its value n people will have to carry large quantity of it to exchange for a small quantity of goods and services, dis will lead to inflation. On the other hand, money must not be too scare nor too much in circulation. There must be an equilibrium and that's why we have the CBN....if the volume of money in the economy is too much, they reduce it, n if is not much they add....their primary job is to regulate the economy. 6 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by oluwaVaz(m): 1:09pm On Jun 01, 2016 |
Am just passing.... Am just passing.... 1 Like |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by suyamasta(m): 1:09pm On Jun 01, 2016 |
nobullshit:It was not money printing that caused zimbabwes financial mess, its a lot deeper than that, just look at the Naira now CBN did not print too much yet we have witnessed higher inflation between january and now! 1 Like |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Nobody: 1:09pm On Jun 01, 2016 |
fiizznation:Make e be like that for here too.More inflation, more money to spend. I don't like poverty. 4 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by Tintinnoty(m): 1:11pm On Jun 01, 2016 |
Trendy247: then what happy? steal steal until u get caught 1 Like |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by JohnQueen(m): 1:11pm On Jun 01, 2016 |
My brother you are not alone in thinking so jare. Used to think so too but economics taught that there has to be equal flow of cash and goods. 2 Likes |
Re: Why Can't A Country Just Keep Printing Money And Become Rich by bookface: 1:12pm On Jun 01, 2016 |
fiizznation: Printing money will not always result in inflation. Although it is the conventional wisdom, it is not always the case. The conventional wisdom is based on the simple equation MV = PY where M is the supply of money, V is the velocity of money, P is prices and Y is the total quantity of goods. The conventional wisdom that printing money simply increases inflation assumes that if M is increased, all other things being constant, then P should increase. But all other things shouldn't have to be constant. For example, if printing money leads to more quantity of goods, prices could actually fall. Furthermore, the argument is nonsense that more money supply equals higher inflation. Everyday a bank creates a loan, it is basically increasing the money supply out of thin air, which may not necessarily lead to inflation. Finally, think about this...suppose the central bank prints out 10 billion naira notes today, and they leave it in the vault...would it cause inflation? The answer is no Suppose, the CBN choose to give the 10 billion notes to just 10 people, would this cause inflation? The answer is no! hence the role of the velocity of money. EDIT: That said, you are correct, printing money to make all Nigerians billionaires will result in hyperinflation. 20 Likes 1 Share |
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