This may seem like a silly question Is it possible for Great Britian to print more money? So everyone has more
Answer:
Actually the answer is yes, to the question as put. The country could print more money, that would cause price and wage inflation and everyone would have more money. But it wouldnt make people produce anymore so prices would go up and so having more money wouldnt make people any better off. And, if anything, everyone would be worse off as inflation brings with it a less efficient economy.
Technically, printed money - notes and coins - is supplied to banks on demand. But they pay for it by lodging other financial instruments with the Bank of England. So it isnt free to get hold of notes and coins from the primary source. To create more money what the Bank would do is lower interest rates. That lowers the cost of lodging those instruments with the Bank and so would facilitate more notes and coins being demanded. (More importantly, also of of course, it discourages saving/encourages expenditure in the wider economy and so leads to demand for those notes and coins).
So yes, you can do it by cutting interest rates. But its not a good idea and would just put prices up leaving no body any better off.
if more money is printed, the value of money decreases, so everything just becomes more expensive
and i dont know about in great britain, but in america all paper money is backed by gold (at least thats what my history teacher in high school said)
:)
OOH! More money! Lots of those half-crowns too.
Yes exactly, if u print more money it will eventually become worthless as there will be so much of it about , why would someone want more? Things would indeed be more expensive and in the end it wil end up being the same as it is now.
printing more doesnt mean you get more, you have to earn it sad to say.
BRILLAINT QUESTION.I HAVE OFTEN WONDERED THIS MYSELF OVER THE years,1 day about 2 years ago coincidently i came across an article to answer my question..being kinda young (early teens) i didnt understand much of it except that no its not possible to do that!
Most money exists only as numbers in account books (or computers). Notes and coins account for only a small amount of it. The government produces notes and coins so that there's always enough for people who use money in that form. If they simply printed more, it would stay in the banks.
An important economic control held by all governments is to restrict the money supply. If more money or credit exists, people lose confidence in it and the value goes down. Governments can fund their own expenditure by creating money. The present UK and EC Governments do not. The present US Government has done. That's why Sterling and the Euro are currently much stronger than the US Dollar.
You were right - it IS a silly thing to say, for the monetary system just doesn't work like that - you have to have something (like reserves) to back it up before you print more money, and even then it's not a good idea ! ! !
You have to realize that money has to have a universal 'Value'.
If Britain simply prints more money the laws of supply & demand kick in and for every new pound that's printed it very slightly lowers the value of the already existing pounds.
Ultimately leading to higher prices on labor & products...So, you're right back where you started...Somebody started the phrase," There's No Free Lunch." Which means some type of work is required to make money to buy lunch..or anything else.
this can be explained in terms of a fallacy, known as the fallacy of composition.
suppose i had more money, i have increased my buying power.
suppose everyone had more money, everyone has an increase = no difference. in fact, worse off, since money value is now lower.
another example would be:
if i stood up watching football in a stadium, i get a better view.
if the whole stadium stood up, i might be worst off than before.
It is possible, and it would give everyone more money in the numeric sense, but it wouldn't give them more in the real sense, as in purchasing power.
Money is only the method of exchange. It is a claim against goods and services produced by others. Printing more money will mean everyone has more, so, relative to others, you will still each have approximately the same amount of claim against others.
Money is printed according to the Country's wealth. Unfortunately,no matter how much money is printed it will not be shared amongst the country's population. It will still be made by the hyper rich and the well off. The working class and those that have to work for survival will just earn their measly whatever. It is the way things have been for thousands of years and although some things have changed in the last hundred years, it is all reversing to the haves and have no-ts. I hope you understand my answer
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