Why cant we generate money at the time of crises ? Although they are only paper note . Why cant any country do this ?
Dear student,
At the time of crisis there is no production and supply is far less compared to the demand. The Government do not print currency note at time of crisis because wealth could not be created just by printing notes. By printing notes the money circulation increases which leads to more inflation, in this way it even worsen the situation of crisis. Therefore, we can not generate money at time of crisis.
Regards
At the time of crisis there is no production and supply is far less compared to the demand. The Government do not print currency note at time of crisis because wealth could not be created just by printing notes. By printing notes the money circulation increases which leads to more inflation, in this way it even worsen the situation of crisis. Therefore, we can not generate money at time of crisis.
Regards