Can printing money pull India and get out of this recession

1.Printing more money will tend to decrease the purchasing power of Rupee.
2.Circulation of Rupee from RBI to banks to people will be more easy. People will have more money in their pocket.
3.Just imagine even a daily wage worker will have good amount of Rupee due to this circulation and he will think that “Now I don't have to work anymore”
4.That tends to decrease the supply of many products which latter will increase the cost of that product,rising the inflation.
5.At some point of time you will become millionaire but even with that much amount you will not be able to buy anything.
I think that printing more money might not be
the right way to go about dealing with the current situation due to following reasons.
  1. Inflation rates are already at 5.91% which could increase if additional money is printed.
  2. INR is already getting weakened compared to the dollar. Printing more money would only make this problem worse.
So instead of printing more money, I would suggest that the government does something about the hesitation of banks to loosen their purses and pass on the rate cut benefits by RBI to the public.

Yes but you get only one chance.
If you use it every time this will not work its just a life line it works for one time 2 time or also 3 time.
But if you use it every now and then and imagine you can never lose then you are in fools paradise.
What makes printing money more dangerous is its a like alcohol or drugs for banks. once you get addicted to it you can never live it but one thing is sure in the end you would lose.
So that's why we should not print money simple reason we don't want to go into economic stuff.

Comments

Popular posts from this blog

Jacob Rees-Mogg making a mockery of British democracy. Is it true?

Why didn't Trump take the right efforts to pacify the protesters?

Do you think WordPress is better than Shopify for e-commerce in 2020?