Financial Channel

Someone told me this before. But forget why just Canada print more money to pay off its debt.

Can someone explain?

Thanks.

If Canada prints more money, the supply of the Canadian dollar would increase. Canadian dollar would depreciate because of it and therefore, printing more money is not a way to repay our debt.

Printing money will lead to an rise in inflation, caused by the increase of money supply in the system.

The factors and reasons behind that effect require some groundwork knowledge of economics to understand completely.

if u like to learn more about macro economics, the macro econ prof i had has written a very good book

http://www.amazon.com/gp/product/026...g=UTF8&s=books

I think this topic is covered by first year economic course. I remember ECON 110 at Queen's covers this topic.

cause this can happen:

http://en.wikipedia.org/wiki/Hyperinflation


brief:

In economics, hyperinflation is inflation which is "out of control", a condition in which prices increase rapidly as a currency loses its value. No precise definition of hyperinflation is universally accepted. One simple definition requires a monthly inflation rate of 50% or more. In informal usage the term is often applied to much lower rates. The definition used by most economists is "an inflationary cycle without any tendency toward equilibrium." A vicious circle is created in which more and more inflation is created with each iteration of the cycle. Although there is a great deal of debate about the root causes of hyperinflation, it becomes visible when there is an unchecked increase in the money supply or drastic debasement of coinage, and is often associated with wars (or their aftermath), economic depressions, and political or social upheavals.

Wow they only teaach that in 1st Eco? WTF?

I knew the answer to it when I was 8 years old. Thought it'd be common sense.

If print more money then dollah go down and must hire more people who no speak english proper

Wow! You were pretty bright for a 8 year old. I don't believe my 8 yr old cousin understands the concepts of hyper inflation, increase in money supply, and depreciation of the dollar.

In his mind, more money = more candies and PS2 games.

Germany did the same thing after WW2, they were in debt, printed money, then went into hyper-inflation.

Hah hah, I was reading down this thread wondering why no one had made a single comment about it! Here, have a cookie! You deserved it.

I heard that china put a lot of high grade American counterfiet dollars into the American system with the goal of toppling em over, but even with the the influx...it didn't do much

You heard that, eh? Where, may I ask, is the source of this genius conspiracy?

wow you knew about Economics when you were 8 year old ... you must have had a terrible childhood

It's nonsense, cash is such a small portion of the available amount of a currency, most money is electronic.