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Why Can't We Print More Money

The document discusses why governments cannot simply print more money to solve economic problems. Printing too much money leads to inflation as the increased money supply causes prices to rise when there is no corresponding increase in goods and services available. When prices rise due to inflation, people's money loses value and purchasing power over time.

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521 views10 pages

Why Can't We Print More Money

The document discusses why governments cannot simply print more money to solve economic problems. Printing too much money leads to inflation as the increased money supply causes prices to rise when there is no corresponding increase in goods and services available. When prices rise due to inflation, people's money loses value and purchasing power over time.

Uploaded by

kaydifepse
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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WHY CAN´T WE JUST

PRINT MORE MONEY?


PAOLA PAZ ID: 24015
THE ANSWER IN ONE WORD IS...
INFLATION
MONEY
Money is like a special paper
that we use to buy things. But its
value isn´t in the paper itself, it’s
in what represent.
SUPPLY
PRICES RISE DUE TO
MARKET FORCES

AND
DEMAND
There are things that are available to
buy (supply) and people who want to
buy those things (demand).
SUPPLY AND DEMAND
The prices are forced The prices go up
down (due to scarcity)
When there are many When many people
things available but not want to buy
many people want to buy something that is not
them widely available .

Añadir un subtítulo
INFLATION
Inflation occurs when the prices of
things constantly rise. This happens
when there is too much money in
circulation and/or not enough things
to buy. Inflation makes the money we
have worth less over time.
CAUSES OF
INFLATION
When governments print too much money
When businesses' costs of making
their products increase

They have to raise the prices of


An excess in demand without changes in products to cover those higher costs.
supply creates scarcity, so prices go up.
CONSEQUENCES When prices rise a lot, the
money we have buys fewer

OF INFLATION things, so we lose purchasing


power.

But due to
inflation

You now need more money to buy the same pizza, so your
money has lost value.
INFLATION
It's something bad that affects everyone, so central banks
have to be very careful about how much money is in
circulation
THANK YOU
Don't Hesitate To Ask Any Questions

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