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Printing More Money During the Inflation
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[QUOTE="Mika, post: 276285, member: 29399"] Inflation basically occurs during a recession. Recession means lack of economic activities. There are many reasons for recession. Some of the reasons are purely financial, for example, when the market peaks, it will start coming down as the market cannot always remain bullish. Some reasons for recession are not in any way related to finance or economics. For example, the current global recession started because of corona pandemic and continued due to war in Ukraine. The recession is expected to continue until the war will come to logical conclusion. When there is recession, purchasing power parity decreases, which means the value of money decreases. In order to tame this situation, governments print more money. There was a time when the governments had to back their currencies through gold or foreign cutting, and currently this is not a requirement , therefore, governments can print as much banknotes they want. However, this is bad for economy. [/QUOTE]
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Printing More Money During the Inflation
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