If government's aren't allowed to print money (to prevent inflation),?

Question

how did we get all the notes and coins in our wallets?

Can governments ever print more money eg when employment rises?

Answer 1

Governments printing  currency and increasing the money supply is not same thing,  The mint is in charge of producing coins and the dept of Treasury of printing currency and banks or people who want new currency can obtain it by  turning in "old" currency or by writing a check and "buying" it.  There was a time when governments printed currency to increase the money supply so the term continues to be used, but now creating money means increasing the credit  available in the economy. The Fed tries to create "money"  at a rate that produces 1 or 2% inflation a year so the amout grows a little faster than the economy

Answer 2

they control inflation through interest rates... when germany printed more money during the depressing they suffered hyperinflation thats why they dont do that anymore cause it makes things worse ....theres a photo i remember with a kid literally having a barrel of notes to go and buy a loaf of bread ..and it was cheaper to burn money to use as a heat source than to actually use it

hope this helps u! (:

Answer 3

Our govt DID print more money, that's what lowering the interest rate IS. why do you think gas is so expensive, the value of the dollar is worthless, so they want MORE of them to trade for oil.

so yes, they print more money whenever they want, and here in the US they dont know how much is out there...best guess is 6-7 trillion

Answer 4

Currently w/ the interest rates being below 2.0 do to the housing market it is below the inflation rate. Yes the government is still printing and yes our dollar is declining as a result.

Though that is not your question. Printing more money does not prevent inflation it causes it. The sell off of our bonds/currency throughout the world in combination w/ our continuous drop in interest rates causes the decline in the dollar.

This is all relative to inflation and the rise in commodities in combination to the world's demand which is increasing as well. China/UAE/Brazil/India and so forth. The world will be better, US will suffer momentarily until we make the proper adjustments.

Answer 5

Governments print money according to the current GDP...there has to be something to back the money up e.g. in the old ages money was printed according to how much gold there was in the country. (if ur living in the UK). Governments can only print money to replace the current notes in circulation. When employment rises, there is a natural increase in the flow of income (cash) i.e. businesses pay employees - employees spend in businesses. This leads to a higher demand for notes and coins as it is a convenient method of payments.

Answer 6

When people, like those with my political views, complain about government printing money, we mean that we object to them having nothing to back it for one thing, and having a loose fiscal policy for another.

Having nothing to back it means the dollar isn't tied to a certain amount of deposited gold or silver, like it used to be.

Having a loose fiscal policy means, in relation to printing money, that they, or the Federal Reserve corporation, sets the prime rate too low, which encorages irresponsible lending and leads to the boom-bust cycle, as economist Frederich Hayek won the Nobel prize for explaining.

Answer 7

no he cant do that cas he is not aloved to print money