Why Countries Cannot Print Money | HyperInflation | Curious DNA
Автор: Curious DNA
Загружено: 2025-01-27
Просмотров: 536
Printing money to eradicate poverty may seem simple but has severe consequences. Excess money causes inflation, where currency loses value, raising prices of goods and reducing purchasing power. This can lead to hyperinflation, as seen in Zimbabwe, where a $100 billion note barely bought groceries.
Excess money distorts supply-demand balance, destabilizes economies, and erodes savings. It also impacts global trade by reducing currency value, increasing import costs, and discouraging foreign investment.
Sustainable poverty reduction requires increased production, meeting demand, and sound fiscal policies. Central banks, like RBI and the Federal Reserve, regulate money printing to maintain economic stability.
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