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EnglishWhat is the correct formula that can tell that you can print an X amount of money since you have good productivity on items and services without weakening the national currency.

For the last 2 years governments around the world were printing currency. This lead to high inflation on prices for everything. What is the correct formula that can tell that you can print this year an X amount of money since you have good productivity on items and services without weakening the currency. Any formula or thoughts on this?

PANAGOT 1 year ago
    Tags:
  • Economy
  • Inflation
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Ahmed 1 year ago
If the productivity of an economy is fixed but the supply of currency decreases, then each unit of remaining currency must store greater value
Aiman 1 year ago
you'd find no "formula" as such. but, one factor that tells the government of a country how much money they can print without increasing the inflation is the "raw wealth" of that country; e.g. the amount of Gold that country owns.
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Ethan Scheffel 6 months ago
GDP growth rate - A country's GDP growth provides a rough estimate of how much additional economic activity and transactions are occurring that may require money supply growth. Printing money too far above GDP growth risks devaluation.
Inflation rate targets - Most central banks target annual inflation around 2-3%. Printing money to chase GDP growth, but missing inflation targets, can risk long-term currency weakening.
Money velocity - The rate at which money circulates through economic transactions. Higher velocity allows the same money supply to support more transactions without devaluation.
Output gap - The difference between actual GDP and estimated potential GDP. A large output gap (underperforming economy) may necessitate boosting money supply to drive growth.
Interest rates - Lower interest rates make money more available for economic expansion, reducing immediate need for more money printing.
Money demand - Factors like population, income, and technological shifts drive legitimate demand for money over time. Some money printing is needed to meet higher demand.
Tools beyond printing - A central bank can use additional tools like adjusting reserve requirements or interest rates to help spur growth besides just printing money.
Muhammad 1 year ago
Productivity will increase if less currencies are printed
RichTobin 11 months ago
Do you have much experience about digital currency trading?
Akinola moyo 1 year ago
Printing extra notes must be followed by increase in production and increase in economic activity
Jimmy 1 year ago
Why printing money usually causes inflation. In normal circumstance (e.g. no shut down, most people employed) if you print more money and the number of goods remains the same, we will get higher prices. Because consumers have more money they want to buy more goods.
Maryam 1 year ago Correct
you'd find no "formula" as such. but, one factor that tells the government of a country how much money they can print without increasing the inflation is the "raw wealth" of that country; e.g. the amount of Gold that country owns.
PANAGOT 1 year ago
I see. Thanks :)
Cristiano Andrade 1 week ago
você não encontraria nenhuma "fórmula" como tal. mas, um factor que diz ao governo de um país quanto dinheiro pode imprimir sem aumentar a inflação é a “riqueza bruta” desse país; por exemplo, a quantidade de ouro que esse país possui.
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waseem bai 1 year ago
x = per year profit turnover - per year loss
if x is negative then print upto loss amount
PaimonVarcaeiii 3 weeks ago
Tingkat pertumbuhan PDB - Pertumbuhan PDB suatu negara memberikan perkiraan kasar tentang berapa banyak aktivitas ekonomi tambahan dan transaksi yang terjadi yang mungkin memerlukan pertumbuhan jumlah uang beredar. Mencetak uang terlalu jauh di atas pertumbuhan PDB berisiko menyebabkan devaluasi.
Target tingkat inflasi – Sebagian besar bank sentral menargetkan inflasi tahunan sekitar 2-3%. Mencetak uang untuk mengejar pertumbuhan PDB, namun gagal mencapai target inflasi, dapat berisiko melemahnya mata uang dalam jangka panjang.
Perputaran uang - Kecepatan peredaran uang melalui transaksi ekonomi. Kecepatan yang lebih tinggi memungkinkan jumlah uang beredar yang sama untuk mendukung lebih banyak transaksi tanpa devaluasi.
Kesenjangan keluaran - Perbedaan antara PDB aktual dan perkiraan PDB potensial. Kesenjangan output yang besar (perekonomian berkinerja buruk) mungkin memerlukan peningkatan jumlah uang beredar untuk mendorong pertumbuhan.
Suku bunga - Suku bunga yang lebih rendah membuat uang lebih tersedia untuk ekspansi ekonomi, sehingga mengurangi kebutuhan akan pencetakan uang lebih banyak.
Permintaan uang - Faktor-faktor seperti populasi, pendapatan, dan pergeseran teknologi mendorong permintaan uang yang sah dari waktu ke waktu. Sejumlah pencetakan uang diperlukan untuk memenuhi permintaan yang lebih tinggi.
Alat selain pencetakan - Bank sentral dapat menggunakan alat tambahan seperti menyesuaikan persyaratan cadangan atau suku bunga untuk membantu memacu pertumbuhan selain hanya mencetak uang.
Jess 1 year ago
I think the illusion we create for this is exactly that an illusion. It's hard to estimate with unknown forces like human nature, over population, disease, bacteria, infections. Then natural Forces of the planet such as fires earthquakes, and large storms. All extremely hard to estimate?
Muhammad zeb 1 year ago
An exchange rate is how much it costs to exchange one currency for another. Exchange rates fluctuate constantly throughout the week as currencies are actively traded. This pushes the price up and down, similar to other assets such as gold or stocks. The market price of a currency—how many U.S. dollars it takes to buy a Canadian dollar for example—is different than the rate you will receive from your bank when you exchange currency. It is often a key element of financial trilemmas. Here's how exchange rates work, and how to figure out if you are getting a good deal.
Mohsen Rezaei Barzani 1 year ago
The government has financial support in dollars in the central bank
And in my opinion, the government can generate money with half of that support and help production with the other half and It will has current assets by exporting the country's resources.