Jackie asked in Social ScienceEconomics · 1 month ago

How can a country run out of money? ?

If a country can produce more currency whenever it needs to how can it ever be poor or in debt? 

9 Answers

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  • 1 month ago

    Because when they print more money it (as currency) loses its worth

  • k w
    Lv 7
    1 month ago

    check their pockets.......

  • Zirp
    Lv 7
    1 month ago

    Because countries don't print money themselves anymore. They borrow it from BANKS who create it out of thin air (don't even need to print) and then charge INTEREST. As money trickles up into the pockets of those who don't need to spend it, the only way to keep our economies from shrinking is getting ever deeper in debt

  • Oiy
    Lv 5
    1 month ago

    The needs are limit. It's the same as your eating. If you eat too much, because you have unlimited money, you will die sooner because you are fat and naughty with high blood pressure and diabetic.

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  • 1 month ago

    Cant, they have a paper machine

  • martin
    Lv 7
    1 month ago

    Inflation makes currency worth less. If you borrow a dollar today and pay it back 20 years from now, it will feel the same as paying someone a nickle today.

  • Judy
    Lv 7
    1 month ago

    Uh, if they just print more, it causes inflation so pretty soon you need to spend $1000 to buy a loaf of bread. Some countries with zero understanding of basic economics have tried this.

  • 1 month ago

    If you keep on printing money, its value will drop because the value of the paper money is diluted. Therefore, simply printing more money does not work.

    Today's Venezuela is a good example of that.

  • 1 month ago

    Clearly, you don't know sh*t about economics.

    The value of money comes from the supply of money and it's relationship to the value of the national economy that is what gives currency value.

    If your economy stays at the same level, but you double the currency supply, the value of your currency will DROP by 50%. Because now there's twice as much money backed by a no increase in value economy.

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