criteria for a country to print there curency (koi country kitne note print kr sakti hai )

Can a country become rich by printing more notes? Learn the mathematics behind printing of notes

Any country usually prints notes equal to two to three percent of GDP. For this reason it is necessary to increase GDP to print more notes and to increase GDP, attention is given to factors like growth of various sectors like manufacturing and services, reducing trade deficit, etc.

Inflation may reach the peak due to printing more notes.

When asked about the well-known economist Brinda Jagirdar, he said, "We can understand this easily through the circumstances arising in Zimbabwe and Venezuela." The governmentks of these two countries printed large-scale notes for debt settlement. However, inflation rose to sky high in these two countries due to lack of economic growth, supply and demandIt is noteworthy that the African country of Zimbabwe and the South American country Venezuela printed more notes to strengthen their economy. However, the more these countries printed notes, the more the inflation increased and both these countries reached a period of 'hyperinflation'. In the year 2008, inflation in Zimbabwe registered an increase of 231,000,000%.

Model of more note printing is generally not effective


The reason behind this is that if the government or central bank will print more notes and distribute it to everyone, then everyone will have money. On the other hand, if the production of goods has stopped or there is a problem in supply, then inflation is bound to increase. According to the Jagirdar, the situation is such that even in the present circumstances, industrial production is stalled, supply is affected, there is no demand due to uncertainty, in such a situation, the government can give money in the hands of the people only to a extent.


The value of currency, sovereign rating is affected if more notes are printed.

The jagirdar said that the printing of notes over a limit reduces the value of the country's currency. Also, rating agencies reduce the country's sovereign rating. This makes it difficult for the government to get loans from other countries. Along with this, the government gets loans at high rates.

It is also important to understand this principle

Chief economist at rating agency CRISIL says that printing a small amount of rupee can help to boost economic growth, but there is a limit.

During the financial crisis of 2008, in order to strengthen the demand, almost all the central banks of the country had printed a little more money. This helped to revive demand.It was during this economic crisis that the term Quantitative Easing came into the mainstream. This means increasing the printing of notes to bring more money into people's hands. However, it was also seen that in all the countries which resorted to quantitative easing, there was devaluation of currency as well as inflation. Hence, one can say that there are more disadvantages than benefits of increasing the printing of notes.