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banana brains | Why dont the bank of england just print loads more money and solve all the problems that way ?? |
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Lestat
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Because the amount of money in circulation has to be controlled in order to maintain the value of the Pound. The more money there is in circulation the less value the Pound has and this drives up inflation. This is what the German banks did in the 1920s and the result was the Mark became useless and inflation reached staggering proportions |
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Henry Hedgehog
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This is exactly what the government of Zimbabwe is doing! Result: hyperinflation.
The point is, the more money there is around, the less value it has in terms of what it will buy. Anything that's plentiful has little value. Anything that's scarce tends to be valuable. So the way to counter inflation is to make sure there isn't too much money in circulation. |
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Hat-A-Tat-Tat!!
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because then money would have no value whatsoever! |
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bardolino
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All that would do is increase inflation, they've tried that in Zimbabwe and inflation there is currently over ten million percent a year. |
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Angela D
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Because printing more money doesn't solve the problem.
It just creates more notes in circulation, it doesn't affect the value of those notes.
The problem remains, all printing more money does is give us the option of using a wheelbarrow full of the stuff to pay for a loaf of bread. |
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richard k
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Banana brains yea right. |
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Anna (The Voter Kid)
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Inflation would go up, So the pound would be even less worthless and anybodys lifetime savings would be worthless. |
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mark m
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If they do this, subsequently the value of the pound will go down further.
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meintjiela
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I know this is a stupid comment, but I think it is also a way to keep the masses struggling to make a living. The economy is driven by the masses. If everyone else have a comfortable live and have everything their hearts desire some people won't be making money especially the government.Companies that make huge amounts of money are monopolies and usually belong to the government. Something has to pull the economy and they own us,body and sole.
I would like to know how right I am? |
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Grimbo ♥
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Yeah I know surely they could sneakily print off a few million |
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