jonniebaby asked in Social ScienceEconomics · 2 years ago

If countries know that printing so much money causes hyperinflation, then why do they do it anyway?

8 Answers

  • Zirp
    Lv 7
    2 years ago

    To prevent mass unemployment and bloody revolutions.

    It doesn't have to cause inflation though. The european Central bank in 2017 created a trillion euro to cause inflation - and failed. People who have more money are not automagically going to buy stuff they don't need or pay higher prices for what they would have bought anyway.

    However, money not being spent does leave the circulation, and compensating for that is a smart thing to do. What is not smart is doing that by going deeper in debt and having to pay it "back" to the banks who created it out of thin air with INTEREST

  • Ray
    Lv 6
    2 years ago

    When a nation is governed by under educated buffoons this tends to happen.

    Slight inflation is healthy, but excessive inflation usually occurs when a politician takes office, wants to fulfill campaign promises so much that they are willing to cripple the countries future to do so. Their word is more important to them than anything else.

  • Mike
    Lv 7
    2 years ago

    If you know eating ice cream and cake after dinner will make you fat, why do you keep eating ice cream and cake after dinner?

  • 2 years ago

    Because they have huge debts they can't pay. Let's say the government owes 80T of your local currency to major banks/lenders. They print out 80T units and pay off the debt. Your currency equivalent you paid is now only worth 30T due to inflation but the debt is paid off. Now people who were paid 800 per month are still paid 800 per month but they can only buy 300 worth of stuff. They demand raises so they can buy food and necessities. This requires more money to be in circulation, so the government prints out more money. Repeat.

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  • It s a way for conservatives to pretend they aren't raising taxes.

  • Daro
    Lv 7
    2 years ago

    The effect of inflation is a lagging factor.

    The politicians get benefit right away.

    Ever hear the claim "....kicking the can down the road"?

    Politicians are not gonna pay the 20 trillion debt , you will get the burden of it. Neither will the super rich. They can simply shift all their assets out of the country before the coming collapse. Billionaires are all, by definition globalists.

  • Anonymous
    2 years ago

    it has not caused any inflation both in America and Europe. And now Japan has got involved. The theory of hyperinflation in Grman Reich and Zimbabwe has not been true so far. It has just become a scared monkey so far. In fact, it has stimulated economic growth substantially.

  • 2 years ago

    Short term visuals by political hacks.

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