Adding currency to National Economies doesn't necessarily cause Inflation - that only happens when the Central Bank overdoes it. Central banks have to add currency to an economy on an ongoing basis when there is Economic Growth so that the Money Supply more or less matches the total value of available goods & services.

Adding currency to National Economies doesn't necessarily cause Inflation - that only happens when the Central Bank overdoes it. Central banks have to add currency to an economy on an ongoing basis when there is Economic Growth so that the Money Supply more or less matches the total value of available goods & services.

https://www.quora.com/How-does-printing-money-cause-inflation-1

Adding currency to National Economies doesn't necessarily cause Inflation - that only happens when the Central Bank overdoes it. Central banks have to add currency to an economy on an ongoing basis when there is Economic Growth so that the Money Supply more or less matches the total value of available goods & services.

Adding currency to National Economies doesn't necessarily cause Inflation - that only happens when the Central Bank overdoes it. Central banks have to add currency to an economy on an ongoing basis when there is Economic Growth so that the Money Supply more or less matches the total value of available goods & services.

https://www.quora.com/How-does-printing-money-cause-inflation-1

Central banks (US, Japan, ECB, UK) have operated quantitative easing programs. This has supported risky assets. The central banks justified their actions by reiterating how low inflation is.

QE has been in operation since 2001 in Japan. US/UK - 2008/2009. ECB - 2015. QE was only meant to be an emergency measure to stabilise the economy.

The question is: has QE been a success?

We have three cases 1st one if the economy working in rcession increasing money supply will lead to more production and more employment 2nd case if the economy is near full employment increasing money supply will lead to more production and increase in price s 3rd case if the economy working in full employment increasing money supply will lead to inflation only.

Dear Dr. Mohamed Benmerikhi,

In general most of the countries currency printing national Banks have major responsibilities aimed at maintaining the stability of the national financial system. Also, the Banks issue monetary policy and controls and supervises banks across the country. The Banks review its monetary policy strategy every two years, as well as each quarter. The main objectives of the Bank's monetary policy is to control inflation, control bank credit, and control interest rates.

One may be a specialist in money and banking, but not always able to identify the extent to which printing money is really good. Some more experience and money implementing techniques here might be needed. All I can say for sure is two things. The one includes what I already said above about ‘… to which extent…’ Because yes, money has been, currently is and equally will be continuously printed; plus, this still is for the economy’s good.

The other thing devolves even from primitive monetary system today imagined. When ‘primitive’ such a system might be viewed as limiting to: (1) money supply issued by the monetary authority in order to repay all those working for the State, e.g. military, public administration and other servants, and pay for all the other State’s payment obligations and services; (2) taxes receiving from all citizens and others in such a debt. So, notice that primitive monetary system skips at least two aspects (may I call them valences) proper to later modern money, i.e. crediting and international money.

Back to primitive monetary system, here the money supply level unknown is born – i.e. to live forever. Such an unknown might at the most be constricted or viewed between two possible down and up limits, i.e. between that all money supply stays on its market and never come back to its issuer and the same money supply coming back to monetary authority. The earlier is for money overvalued, the latter is for money missing any of its previously expected value. Or, here the previous will expect at least some more money supply (i.e. printing money), the latter might require some other delicate monetary policies applied, may be here included some money supply shrunk.

More deeply, money supply issued by the authority might equalize the State budget’s spending and, since some previously issued money supply back to the same State, budget deficit is the one equalizing money in circulation and private treasuries, the last as money accumulated by society.

Roughly, first the State authority will always be interested in issuing money that partly comes back and partly remains there, on market. Second, when new added money supply (e.g. through new printing money) the authority will first ensure some economic development, i.e. new productions and transactions, able to absorb this new money without jeopardizing money value stability – this last damaging alternative means shifting a new mass of money over the same volume of the market supply.

Once more, money has evolved from primitive monetary system to modern ones. Operations with money renew and get complex on all sides, e.g. banking, finances and policies applied. Nevertheless, despite viewing printing money as ‘primitive’ among the whole set as such so far it stays in the current use of monetary authorities.

2

Printing money is only good for the one who prints - and bad for all the others. Therefore it is a very egoistic behaviour but no one except the central banks have the power (are allowed) to do that. Every action of a (central-) bank has the only goal to reinforce the own power - and it works. It is a huge power abuse which always occurs when there is too much concentration of power. You might have a look at the following question - or even add an answer:

https://www.researchgate.net/post/Does_anyone_have_an_idea_how_to_abolish_money_and_replace_it_by_something_better

Best Regards

Andreas

https://www.economicshelp.org/blog/1377/economics/effect-of-printing-money-on-economy/

Article The Effects of Money Printing on Inflation Accounting

Yes. As the economy grows, money in circulation has to grow.

In theory, printing money - increases money supply - that will also lead to inflation. The economic wide impact may be less favourable if the increased in money is not wisely used or invested.