Re: Please Help Me

Posted by glotynn on 2007/5/29 17:21:05

I'm not good at explaining academically how the rules of economics operate in an economy system, but we know that a country publishes money notes according to the levels of her gold and foreign exchange reserves. Over-supply of the money in a country would naturally result in "monetary inflation" which makes everything be priced very high. Geo's example about the price for a box of matches describes this well. Consequently publishing more money does not solve any problem but causes new headache to the country's economy.