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Why don't the banks just ask for more money to be printed out? Watch

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    I never understood this, if the economy is bad, why can't the banks just ask for more money to be printed out?
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    How would this change anything - apart from increasing inflation? Economic output wouldn't rise.
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    Inflation.
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    devalues the currency. If there are more total pounds in the world, then the value of the pound decreases because there is more of it, hence is less valuable. Banks do this sometimes which is called quantative easing, this can increase peoples spending among other benefits, but also devalues the currency; could lead to increased economy though. http://en.wikipedia.org/wiki/Quantitative_easing
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    Ah the innocence! :daydreaming:
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    I see, knew there would be a good reason otherwise they'd already be doing it.
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    Same amount of goods and stuff to buy, more money to buy it with, prices rise to accomodate this, inflation, back to where we started with different prices.

    If done tactfully though, money supply rising can cause interest rates to fall, causing aggregate demand to rise and a stimulatory effect on the economy at the expense of inflation, though this can only happen until interest rates reach the zero lower bound.
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    (Original post by Dream Team.)
    I never understood this, if the economy is bad, why can't the banks just ask for more money to be printed out?
    Printing more money devalues the value of the money, so by doing so prices on everything will rise so firms can still have a sustainable business, everyone will end up paying more, hence inflation.
    Remember when Germany tried it, guess what happened, money was essentially worthless because of hyperinflation, you would find children playing with tonnes of it.
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    theres just been a huge thread about this exact same issue
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    (Original post by Dream Team.)
    I never understood this, if the economy is bad, why can't the banks just ask for more money to be printed out?
    that would be called inflation....

    if you make MORE pounds
    then each pound is worth LESS

    the value of a currency is only determined by the countries treasury which holds its value of gold and other important commodities. A country can only get more wealthy if the treasury gains value
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    Pretty lame troll considering I used this very idea not too long ago -_-
    http://www.thestudentroom.co.uk/show....php?t=2297822
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    Because this will happen

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    also, money can't just be printed out because each money/pound has a value of one gold bar which is stored somewhere ...so every single money that we have is in fact stored in that bank.

    so printing more money is easy but getting the gold bars is not
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    (Original post by Coffeegirl)
    also, money can't just be printed out because each money/pound has a value of one gold bar which is stored somewhere ...so every single money that we have is in fact stored in that bank.

    so printing more money is easy but getting the gold bars is not
    Actually, we don't use the gold standard anymore.
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    That's a lot of information to comprehend.

    So, bear with me, what stops the people that prints money from stealing them after their work is done?
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    (Original post by Matt:))
    Actually, we don't use the gold standard anymore.
    oh haha *awkward*

    thanks for informing me though
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    (Original post by Dream Team.)
    That's a lot of information to comprehend.

    So, bear with me, what stops the people that prints money from stealing them after their work is done?
    Security?

    The workers would be checked when entering the printing rooms and upon leaving them.

    Likewise when it is being moved about, just think of the security vans and workers that go to the banks and stock the ATMs.
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    As has been mentioned, inflation is the mid-long term effect of quantitative easing.

    Besides, it's not like the banks need more money - their abuse of position is a large part of the problems we find ourselves in. Not the biggest contributing factor, but a factor nonetheless. The problem is the average person not having as much money.
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    (Original post by Seaton)
    Security?

    The workers would be checked when entering the printing rooms and upon leaving them.

    Likewise when it is being moved about, just think of the security vans and workers that go to the banks and stock the ATMs.
    Yeah, but, that raises the question, why wouldn't security take it for themselves? Security pay may be alright, but, they could have a lot of money on there hands?
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    (Original post by Dream Team.)
    Yeah, but, that raises the question, why wouldn't security take it for themselves? Security pay may be alright, but, they could have a lot of money on there hands?
    Of course theft does happen, but there are extensive background checks, security watching the security, rigorous procedures and controls so that the money is constantly monitored and immediately stored/contained in a way that it is very difficult to steal any on the sly.

    As far as I know (from what I have seen) it is printed, stack and wrapped in coverings by a single machine in most cases, so no chance of slipping a note or two away. They are then tightly packed in predetermined sizes/bundles so any individual stack that is taken would also be noticed.

    Minting facilities would be among the most heavily monitored buildings in the world.
 
 
 
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