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Why can’t we print more money to overcome crisis ||DPVEU||RBI||

So basically Chala common ga unde doubt enti ante Oka country poverty ni beat cheyadaniki why don’t it just print more and more money ani. So eroju Ee topic ni andarki ardam ayela chepali ani Ee article intention. So ee chinna example chudandi.

Imagine Oka village which had 100Kg of Rice. Every KG of Rice ni oka piece of paper toh konukuntaru, The Village on a total has 100 Pieces of Paper.
Now, Sarpanch(Oori Pedha) anukunadu inko 100 piece of paper chedam ani. So ipudu there are 200 Piece of Paper in the village But the Quantity of Rice didn’t change i.e. 100KG only. Only difference em iendi ante 1 KG of Rice ni ipudu 2 piece of paper toh kontunaru as rice production pergaledu. Think if Head of the village had ordered for more 100 Piece. Apudu every KG rice Inka pergutundi ( Money value padipotundi )

Now relate this whole scenario to present day.

  • Piece of Paper to Money
  • The Rice here depends on many factors like net exports, Current and fiscal deficit, Interest rate in the economy among many moving parameters.
  • The Head of the village here is Prime Minister Or RBI

Elage try chedam ani koni countries lo ekva money print chesaru andlo Zimbabwe okati and it was hit by hyperinflation, in 2008, prices rose as much as 231,000,000% in a single year Ante, a chocolate which cost one Zimbabwe dollar before the inflation would have cost 231m Zimbabwean dollars a year later.

Also, Ee method valla the rich gets more money & down poor remains poor so crime rate ante dongathanallu Chala perigipotayi unstable ipotundi motam.

So,To improve the nation we need to concentrate on Production but not on Printing cash. Printing more cash ( without improving production ) will only lead to more bad than good.

So if there’s anything to add or defer with this please comment below and also let me know what shall we talk next.

Nayini Anurag Reddy

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