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How Much Money Can A Country Print At A Time.

Money can be considered as any legal tender that is accepted as a compensation or payment for any goods or services.

What defines the amount of money a country can print.

Central bank has not defined any set value or pattern to limit printing amount of money. The necessity is that it should be enough to provide services, transfer goods and also regain the value of currency. This value of currency depend on enormous factor like associated interest rate, average exports as well as current fiscal deficit and many more.

Usually, Central Bank prints approximately 2_3% of the total Gross Domestic Production. This percentage depends on a country's economy and may vary accordingly. Developing countries print more than 2_3% of total GDP. Circulation of money also depends up on the amount of black money and in turn affects money availability in legal channel.

The printed money should be produced in perfect balance with the value of goods and services. Over supply of currency leads to inflation and in turn decreases purchasing capacity.

Content created and supplied by: Ahmeddgain (via Opera News )

Central Bank

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