How can a country print a currency notes? Why can't we print more currency notes?
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printing currency notes by our home is considered illegal
we can't do that
the government prints notes at a specific place
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In the same manner, printing extra currency notes will only reduce the value of those currency notes. This is because of inflation. When you print extra money, there are more number of people wanting to buy food; but the quantity of food hasn't increased. Therefore, prices will rise.
Printing more money doesn't increase economic output – it only increases the amount of cash circulating in the economy. If more money is printed, consumers are able to demand more goods, but if firms have still the same amount of goods, they will respond by putting up prices
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