Why poor countries can't be rich by printing more money?
When countries are poor, why don't they print more money and become rich? I kept wondering, did you? If yes, your wondering stops. Keep reading...
It is very rare that a country becomes richer by printing more money. There are various factors affecting this.
If everyone has more money, all prices start to hike and go up and up drastically. This has happened in Zimbabwe, Africa and other countries. They tried to print more money. They tried to make their economies grow. The printing presses sped up and prices grew faster. Thus continued until the countries started to suffer from something called as hyperinflation. This happens when prices hike suddenly.
In Zimbabwe, in 2008, prices rose by almost 23 Crore% in a single year. Yes, that's 23,00,00,000% in a year. In simple words, a product for previously $1 would cost $23 crore. Yes.
To get richer, a country has to increase its export. It has to increase manufacturing. This won't happen by printing more money. People will demand for more money and prices will hike.
Another major reason, countries can't get richer by printing money, is that if they do so, their value will go down in the global market.
At the moment, there is only one country that can become richer by printing more money. That's USA. Still, in a limit, or the prices will go up in US dollars. And US dollars will become less worthy.
Posts before October 2021 have been marked as "Old Posts". Less likely, but they might have out dated or incorrect information, ugly looking bits of code, no labels, etc. Don't get me wrong, many of these posts are top-notch and interesting too.
I thought it would be better not to delete or revamp these posts, even if they suck. The bitter truth is that old works always suck, but I take that as a positive tool to convey that I am growing. Besides there's no better way to showcase my journey without these old, messy, poorly written posts!
I thought it would be better not to delete or revamp these posts, even if they suck. The bitter truth is that old works always suck, but I take that as a positive tool to convey that I am growing. Besides there's no better way to showcase my journey without these old, messy, poorly written posts!
Old Post