Some people may say that government can simply print money to overcome any financial problems such as international debts. However, everything isn’t that easy as it may seem. Let’s analyze the model of such a situation when the Central Bank prints more money. The more money people have, the more they want to buy. And here we have the functioning of the economic demand curve. The higher demand is, the higher prices become. And this process in perpetual. The only thing that is received is inflation and the depreciation of the local currency
How does printing money cause inflation?
August 22, 2018 \ Business Papers \ 0 Comments