Can Money Just Be Printed When Needed By The Government...

[AgnesIO]

Yes, they can. No, they shouldn't.

Printing more money simply causes hyper inflation (look at Zimbabwe). Or a famous photo from Germany..

[Chippiewill]

Someone is trying to tell me, that the government can just print money if they need it. But as far as I know, this is false. Because money has a value, and if they just printed new money when needed it, the money will loose that value. Plus, if it was that easy, poor will be taken out the dictionary.

So, the purpose for the thread, is to prove me or the guy wrong. Can the government print money when needed?

They cannot print money, that's silly, they can however print an IOU for the sum of money to the bearer of the IOU (or bank note). However if they have too many IOUs then the IOUs are spread around to much money and those IOUs are devalued.

[Conservative,]

I think the other replies should've answered your question, but if they did, the value of money would decrease because there is more of it - like if Habbo re-released thrones, their value would drop significantly because there would be more available. So the more money you print - the less it is worth.

And Dan, ALL currencies die eventually. The Pound will, the euro will, the dollar will. They all die because of inflation. For example, even in my relatively short lifetime inflation is apparent. For example, when I was about 6, Freddo's (the chocolate bar) used to be 10p. They are now 17p - an increase of 70% due to inflation - and the decrease in the value of money. Same with most chocolate bars - they used to be 50p, now 65 or 70p. Canned drinks used to be £1. Now they're £1.20. Etc.

So the answer is, yes they can, but the money would soon become worthless (like Zimbabwe, 1920's Germany etc.) but that does happen eventually anyway, only it is sped up if the Government decides to print loads off at once, hence why Labour's idea to print more money when they campaigned last year was absurd.

[Metric1]

no. it will **** with their economy and cause their dollar to be less valuable.

[Sharon]

Canned drinks used to be £1. Now they're £1.20. Etc.

what sort of cans are you drinking :S their only 50p a can, 70p at a stretch?

[Eoin247]

Yes, they can. No, they shouldn't.

Printing more money simply causes hyper inflation (look at Zimbabwe). Or a famous photo from Germany..

There are many more reasons to Zimbabwes inflation rate than just printing money. Also the deutchmark became worthless after world war one due to all the things the winning countries implicated on Germany.

[matt$]

what sort of cans are you drinking :S their only 50p a can, 70p at a stretch?

thats what i was thinking
OT: More money = less value like everything else in the world, the less of it the more it cost, printing money will just do the opposite.

[-:Undertaker:-]

And Dan, ALL currencies die eventually. The Pound will, the euro will, the dollar will. They all die because of inflation. For example, even in my relatively short lifetime inflation is apparent. For example, when I was about 6, Freddo's (the chocolate bar) used to be 10p. They are now 17p - an increase of 70% due to inflation - and the decrease in the value of money. Same with most chocolate bars - they used to be 50p, now 65 or 70p. Canned drinks used to be £1. Now they're £1.20. Etc.

Indeed which is what I mentioned, as they are no longer pegged to gold they will revert to their true value, worthless paper.

[Inseriousity.]

Yes, they could just print lots of money and give everyone loads but that's not how capitalism works. Capitalism needs poor people and rich people so they could but they won't. It's not ideal blah blah blah but until someone can suggest a more practical and workable solution, it's the best functioning system we have.

[StefanWolves]

So are we all agreed you can print money but it just devalues the currency?

defined the whole argument in one post.

Both of us were right and wrong, ok?