why don't we print our own rupee ????
By suraj14u452
@suraj14u452 (102)
India
July 17, 2010 11:13am CST
hi friends!!!!
who prints money in a democratic country ??? the government is the answer !!!
but i have a doubt which no one whom ever i ask are satisfying it....
in India , rupee is made by revenue dept. which is of government!!! but , as it is in hand of government why can't we print more number of money(rupee) so that we can financially go ahead !!!!
i think if it could be happened then our government can guarantee do it ... but it is not doing it...
why ?? and what could be the reason ??? plz.. just give me some idea!!!
6 responses
@PTCDude (96)
• India
17 Jul 10
So you want to make your own money. It won't happen.
Reasons:
1) What we eat is mostly Agricultural products and byproducts. Who produce it, Farmers. If he can print his own money then why would he go to Farm and work...? So this is like print money and starve and then Die.
2) This is similar to why don't prey directly go to cave for lions meal.
3) We can not print money that's why they have some price. If you can print money then it will not have any price.
That's why neither Democratic nor other Government will allow you to print money.
Hope you get it..
Happy lotting.
@suraj14u452 (102)
• India
17 Jul 10
i didn't mean to make my own money !! what am i thinking that there are some developing countries .. they compete with developed countries .. the main difference between them is finance then why cannot the government make more money to show that they are financially equal to them....
@PTCDude (96)
• India
17 Jul 10
Then Developed Countries will also print more money..so they will be still ahead of developing countries. It is as simple as that.
Do you know why there is difference between Developed and Developing Countries..??
It is just because they Discovered things Faster than others and they exported them.
If you produce more money then Value of product will still increase. So you will be there only where from you started.
Ex: Indonesia produces more money. India produce less than them.
So 1$ = 9000 Indonesian Rupiah
1$ = 45 Rs Indian.
Producing more money makes no difference.
@mturacom (632)
• India
17 Jul 10
I think that I have the right answer for your question and am sure that it will satisfy you. If the Government Of India will print lots of money then the value of rupee will go down. The value of a currency is decided by the amount of gold(not sure) or the foreign currency deposit of a country. If our(i am also an Indiam) Government will produce a lot of money then also there will be no change in our financial situation. As the value of money will go down there will be no benefit of doing it. We will have to carry around more cash just for the thing which could be bought in lesser money now.
@funorb12 (456)
• United States
18 Jul 10
Yes, I think you have answered her question. Money is a value that we (not Indian) give it. The currency's worth is determined by the economy, financial situation, and the quantity of it. Money does not have a fixed amount. If you have ore of something, the value of it with be lowered. This is like stock and demand. If you have high stock, and people don't need a lot of it anymore because they already have it, the value of that bill or coin will go down. Money is in very high worth if the economy is good, and everything is good. So if money has lower quantities, more people need it, and thus the dollar becomes more rich in value.
@mods196621 (3652)
• Philippines
18 Jul 10
According to my own thinking the government has the control in the monetary fund of the country. And it is also according to the wealth and capacity of one's nation. If there are lots of money therefore they have the capacity to buy those materials of printing because as I know all of the materials that are using to print money are all imported. Hope we also print more money..
Have a nice day!
@Theresaaiza (10487)
• Australia
17 Jul 10
Hi suraj, I am not an economics buff, but I do know that printing your own money or rupee is not a very logical thing to do.
Money only actually represents the "wealth" so to speak of your country. It is not the print on the money, or the bill or coin itself that is important but the value that goes with it.
You cannot mess up the whole stock exhange thing by reproducing the money. That is tantamount to using fake money. It has no value. It is fraud.
@funorb12 (456)
• United States
17 Jul 10
I think you have forgotten the reason of money. Money is a currency that makes people work for something. If the government just mass produces money by a 100 folds, then it'll cause financial troubles, and more economical damage then what it was before. If all the people made more money, then that means they work less harder. IF they work less harder, things wouldn't get done. Crops wouldn't be harvested, houses wouldn't be built, and it'll just be havoc. Its like saying you have all the money in the world, but nothing to buy. Money is actual has no real value. Its just the people who give it value.
@greygoo (795)
• Philippines
18 Jul 10
hi there~
i'm an economics student so i'll tell you the little stuff i know.^_^
are you familiar with the term 'inflation'? it's the general increase in the prices of commodities, and one cause of inflation is printing money. there's this theory about the 'ideal' quantity of money which says that the money supply should increase at the same rate as the growth of real output in the economy. if money increases at a faster rate, there will be inflation.
for example, let's say there exists a simple economy that produces 100 cars (they only make cars ok? to make things simple), and the current supply of money is $1,000. at the average, the price of each car will be at $10.
if the government decides to print more money (say, worth $1,000) people will, in effect, have more cash in hand and feel richer. everybody will probably run to the car shops and buy more cars. since the output/number of cars did not increase, there will be a shortage. so everyone who wants a car should bid; the highest bidder gets the car, but at a higher price.
in a more complex economy, the same thing happens.
i hope i didn't make things even more mixed up for you.(@_@)/