By Admin 
Often the question comes in the minds of the people that when the Reserve Bank of India has a note printing machine, then why does the government not print as many notes as he wants, if the government distributes crores of rupees to everyone, then everyone will be rich, poverty will end, unemployment will not remain. As it looks good as it feels, the reality is completely different and dangerous. Actually, the easier it looks like printing the note, the more the economic work related to it is as many. Many countries have made this mistake and the results have been very dangerous, the economy has been ruined, the value of the note has become like soil, and people have become indebted to eat. In such a situation, let us tell you today that if notes are printed in India, then why does the government not become rich by printing more notes, as well as how this currency system works.
Why does the government not become rich by printing more notes?
The government definitely has the power to print notes, but this does not mean that it can print as much currency as he wishes. Rubbing money is not just the job of planting ink on a paper. A whole economic thinking and system works behind this. If the government gives Rs 1 crore to every poor, then the prices of things of the country will be uncontrollable. The reason for this is that money will increase but things will not increase. Money is just a piece of paper, but its value is because the government guarantees that money. He maintains balance in the country’s economy. If the government prints more money, then that balance deteriorates.
How does the currency system work?
The currency of a country runs on the basis of its GDP. If goods and services are being made in the country, then only the currency of that country is valued. The number of notes that the government usually printed is equal to 1-2 percent of the country’s GDP so that the balance of goods and money is maintained in the market. If more notes are printed, inflation increases, the value of currency falls, foreign companies stop investing, and the country’s sovereign rating falls. Sovereign ratings can consider a kind of credit score of a kind of country. The better it is, the more cheap debt to the country.
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