Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

Fully following

Okay

CodeTemplar:
Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

Inflation, one of the reasons we are in the situation we are in right now.
Print more money and you will soon realize that the 1million minimum wage the Labour dude was talking about will not be enough to feed you for a week.

You can't print money , the only was a country can “print” money for use is by selling treasury bills and treasury bonds

If the government print money to use they will be hyperinflation as a result of too much money

Ask Zimbabwe and Venezuela

If to say I be CBN governor I for bless Nigerians with enough money.
I for dey print money every Friday

if e too much e go loose value

slim75d:
If to say I be CBN governor I for bless Nigerians with enough money.
I for dey print money every Friday

the money useless na

Import dependent nations need to borrow because of foreign exchange but nations that produce everything they consume do not need foreign exchange

slim75d:
If to say I be CBN governor I for bless Nigerians with enough money.
I for dey print money every Friday

I have a picture in my head of you carrying your Ghana must go bag full of money across the street to buy breakfast for Saturday morning.

CodeTemplar:
Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

Who will be incharge of the printing?
Assuming it's the president, that means he can print money and buy whatever he wants, e.g Biden printing billions and sending to Ukraine.
He can PRINT any amount he likes and easily become the richest man.
There will be loss of productivity because no one will be willing to work for money that can be easily printed at will hence its crucial that money be scarce and difficult to counterfeit, money must be decentralized to establish trust.

CodeTemplar:
Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

They print more naira

Some people go loot the money and use it to mop up available dollars

The money lose value

It's like having excess tomatoes without any preservative method in place, it becomes rotten

This question again.

It's like saying, why go to school when you can buy the certificate.

Then only country that does it is USA and that's because they have their military and sanctions as backing.

What US does is synonymous to kidnapping the family of a prospective employer if they refuse to employ you with a degree you bought.

Story

I can understand you as a lay man asking this kind of question but emiefele as CBN governor who is supposed to laugh so hard at this kind of suggestion went ahead to be printing money indiscriminately.

lol and tomorrow this one will start contesting for a political office when he doesn't understand simple basic economics

CodeTemplar:
Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

Why pay money to buy land and get the documents

Why not just print documents n claim lands

CodeTemplar:
Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

If a country government decide to print more money then the government will also have to increase local production to match up with it, if local production does not increase, inflation will deal with the country because lots of money will be chasing few goods, before you know it, prices of goods and services will start increasing

CodeTemplar:
Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

PRINTING VS BORROWING: WHY NOT?
Afterall, currency na just pieces of paper!

This is the reason that ordinary citizens, during times of crisis, always wonder why government doesn't simply print more currency.

Economists, however, have always warned against the impulse to print more money.

If government creates too much money, people suddenly end up with a lot more in their hands; Consumers then suddenly demand more goods/ services, whereas supply would be unable to meet the sudden sharp rise in demand.

This sudden higher demand thus pushes prices up, which (in the worst-case scenario) results in hyperinflation.

FOR INSTANCE:
In Zimbabwe in year 2008 alone, inflation increased to 231,000,000% because the government attempted to solve the country's crisis by printing paper money.

A sweet which previously cost 1 Zimbabwean dollar became 231 million Zimbabwean dollars a year later!

By April 2009, Zimbabwe had to stop printing its currency and started using currencies from other countries.

ILLUSTRATIONS
A. The first photo below shows Zimbabwean banknotes ranging from 10 dollars to 100 billion dollars that were printed within a one-year period (the magnitude of the currency scalars signifies the extent of the hyperinflation).

B. The chart below the photo shows Zimbabwe's inflation of almost 25,000% in 2007.

I doubt the new minimum wage will be up to 70k sef because of inflation

NaijaphiliaBlog:


PRINTING VS BORROWING: WHY NOT?
Afterall, currency na just pieces of paper!

This is the reason that ordinary citizens, during times of crisis, always wonder why government doesn't simply print more currency.

Economists, however, have always warned against the impulse to print more money.

If government creates too much money, people suddenly end up with a lot more in their hands; Consumers then suddenly demand more goods/ services, whereas supply would be unable to meet the sudden sharp rise in demand.

This sudden higher demand thus pushes prices up, which (in the worst-case scenario) results in hyperinflation.

FOR INSTANCE:
In Zimbabwe in year 2008 alone, inflation increased to 231,000,000% because the government's attempted to solve the country's crisis by printing paper money.

A sweet which previously cost 1 Zimbabwean dollar became 231 million Zimbabwean dollars a year later!

By April 2009, Zimbabwe had to stop printing its currency and started using currencies from other countries.

A. The first photo below shows Zimbabwean banknotes ranging from 10 dollars to 100 billion dollars that were printed within a one-year period (the magnitude of the currency scalars signifies the extent of the hyperinflation).

B. The chart below the photo shows Zimbabwe's inflation of almost 25,000% in 2007.

It seems I have seen this kind of comment somewhere before.

If there's too much of your currency in circulation, the value drops.
If the value drops, the amount you wanted to create through printing decreases.

So if you need an extra 2 billion naira for a project, and you print 2 billion naira, the value of the naira drops and that 2 billion won't be worth 2 billion anymore.

The only way to balance it is if you are producing enough to make your currency in high demand. If people are scrambling to find Naira to buy your goods, the value of the currency increases. So that the 1 billion you are holding automatically becomes 2 billion without you lifting a finger.

Also, people should stop using Zimbabwe as an example. Zimbabwe was embargoed economically by the US and UK and they re-marketed Zimbwe's currency because Zimbabwe gave stolen land back to blacks.

Birdbyrde440:


Who will be incharge of the printing?
Assuming it's the president, that means he can print money and buy whatever he wants, e.g Biden printing billions and sending to Ukraine.
He can PRINT any amount he likes and easily become the richest man.
There will be loss of productivity because no one will be willing to work for money that can be easily printed at will hence its crucial that money be scarce and difficult to counterfeit, money must be decentralized to establish trust.

I don't think that's what he meant, he never meant each individual should print but the arms of government that execute the printing

Why the hell do children on Nairaland keep asking this ignorant ass question?! All you have to do is read old posts for clarification. Surely, this place is littered with SS1 boys. JSS2, sef.

Because they are not USA. That is the only country that can get away with pronting unlimited amount of money with minimal consequence to their economy but maximum damage to every one else

CodeTemplar:
Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

for thesame reason Nigeria economy is/was about tank. Right now it's difficult to tell if we are about to implode or Explode cos what is this Nigerian economy? GEJ deserves an apology man.

mrvitalis:

Why pay money to buy land and get the documents

Why not just print documents n claim lands

Colonial powers did this to Africa. After claiming all the land and resources, they made it illegal.

Because you need to import things and the country you import from don't spend your currency. Economic expansion is what should normally create new money. Two much money in circulation than the total number goods and service just drives the prices up.

Davidblen:
You can't print money , the only was a country can “print” money for use is by selling treasury bills and treasury bonds

If the government print money to use they will be hyperinflation as a result of too much money

Ask Zimbabwe and Venezuela

Selling treasury bills and bonds is to withdraw money from circulation, when the government notices too much liquidity.

A government can print money to meet up budget deficits and thereafter gradually withdraws it from circulation

Ask Zimbabwe