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 )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform See More