Putting an end to money printing isn't - in itself - enough to make the economy better, especially not immediately. It will take a couple of months, but prices will eventually stop rising, plateau, and then begin to fall, and the economy will improve. It is counseled that stoping monetary expansion be accompanied with [government] spending, regulatory and tax cuts
Pretty much all the central banks on earth print money, and that's why prices always trend upwards.However, some central banks do something called "inflation targeting" - where they fix some arbitrary percentage of inflation that they [wrongly] assume is necessary. For some reason, they agree that 2%-3% is the acceptable level. I disagree. All inflation is bad
What happens if the central banks stop printing money? Will the economy be better off automatically?
Putting an end to money printing isn't - in itself - enough to make the economy better, especially not immediately. It will take a couple of months, but prices will eventually stop rising, plateau, and then begin to fall, and the economy will improve. It is counseled that stoping monetary expansion be accompanied with [government] spending, regulatory and tax cuts
But what about first world countries, their central also print more money no? Or is that more regulated than that of Nigeria.
Pretty much all the central banks on earth print money, and that's why prices always trend upwards.However, some central banks do something called "inflation targeting" - where they fix some arbitrary percentage of inflation that they [wrongly] assume is necessary. For some reason, they agree that 2%-3% is the acceptable level. I disagree. All inflation is bad
It all makes sense now.
Thank you. You're too kind
You're welcome