Why can't they just print more money?

Question

If a country is in financial difficulty why can't they print more money? Won't it just solve the problem?

Websites will b useful...thankyou.

Answer 1

The more money that’s out there = the lower the buying power of any given piece of currency.

http://www.google.com/search?hl=en&q=why...

Answer 2

They can, and they do. And until people catch on, it will solve a problem. Temporarily. Then it will create even bigger problems as people will shun the currency. Study history.

Answer 3

Because it will lead to inflation.  That's why there are some countries where it costs 50,000 of their currency to buy a loaf of bread.  Please see the link below.

Answer 4

based on what. It has to have some value. Look into your hand and if it is empty what is the value? Money must have some backing or it is devalued and is worth less and less. So inflation takes over and that is the mess the U.S. is in now we have nothing to base the value.  

Answer 5

our money is mostly based on gold. which has value. all currencys have to have value.  a million dollar bill just represents a large amount of gold that is to heavy to take around with you everywhere. paper money is not worth anything unless it has a backing of some worth.

Answer 6

Well, the government can print more money and does.  That is inflation.  It doesn't change the amount of goods the money represents, it just changes the number of dollars.  Our money represents our productivity.  Without raising it printing more money just means each dollar represents less productivity.

When the US was on the gold standard money had a set value based on how much gold it represented.  If they printed more money it still represented the same amount of gold.  Each dollar was worth less of it.  Same thing here.