Can you make a lot of money if you take a lot of money? - A funny economy story



You can not copy money like this. It is punishable to use counterfeit bills that look the same as money.

But you might have thought that once more you want more money. Can you give me a lot of money from the country?

As the money grows, people will buy things they've always wanted to buy. But things can not be made as infinite as they want. If something is missing, the price will go up. So the market so much money, prices are up significantly, the development of the price of the goods to be much more bloated than the actual value of inflation ( inflation 'm called).


On the contrary, the phenomenon that the prices continue to fall and economic activity stagnates is called deflation . I think it would be a good idea to buy goods at a low price if the price goes down due to deflation, but it is not. If the price goes down, things do not sell well. I'm hoping that the value of the goods will fall further and people do not buy things. Companies can not sell things, and companies do not make things anymore. If this situation continues, we will eventually be forced to fire our employees or close the factory doors. Then the whole country economy can become difficult.

Can you make a lot of money if you take a lot of money?  Body image 2
The value of the item is a problem even if it is too much, and it is a problem to lower it. Money is too much a problem, at least it's a problem. So the government is always trying to stabilize prices.


Can you make a lot of money if you take a lot of money?  Body image 3
Quietly! Bills scrapped from the current economic recess
1920s German man decorating the wall with bills
1920s German man decorating the wall with bills
I fanned with money, and I play with money and play. What does all this mean? It happened in Germany in the 1920s.

After World War I, the Germans in the war got a lot of money. The government issued the currencies when it needed money. As a result, the value of money was so low that I could not function.

The monetary unit of Germany is 'Mark', which says that a piece of newspaper was 7,000 marks, a piece of bread was 80 billion marks, and a glass of beer was 209 billion marks. People had to carry a bunch of bills, and the German government issued 100 trillion-dollar bills at the time.

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Credit Creation / Credit Crunch - Dictionary of Economic Terms

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When a bank deposits its first deposit (the first deposit received), the bank leaves only a certain amount of reserves, and the rest of the loans are made. If the loan is used again, the bank will make a loan again. In this way, the phenomenon that a bank creates a deposit currency more than several times the initial deposit amount through a loan is called credit creation or deposit creation. And a multiple of the amount of money raised in the process of credit creation is called a credit multiplier. - Loans and deposits are repeated and the entire loan is deposited back into the bank in the form of derivative deposits (deposits deposited with current deposits) Once the process is repeated, the credit creation limit (X) for a given original deposit is defined as X = C (1-R) ​​/ R. Where C is the original deposit, and R is the bank's reserve prepayment rate. - Credit crunch means that households or businesses suffer difficulties as financial institutions do not pro...
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Types of Funds - Current affairs dictionary

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Funds are divided into bonds and equity depending on whether they buy bonds or buy stocks. Funds can be divided into growth type, stable growth type, and stable type depending on the stock addition ratio. ■ Bond-type fund / equity-type fund The classification of a fund is divided into equity, hybrid, and bond types depending on how much money you invest in stocks. If you invest more than 60% in stocks and bonds, Respectively. In other words, "bond fund" is a commodity that invests more than 60% of trust assets in bonds and bonds-related derivatives without including stocks (including stock-related derivatives) in the operation target. 'Equity-type funds' are commodities that invest more than 60% of trust assets in stocks and equity-linked derivatives (stock index futures and options), and equity-type funds have the risk of incurring principal, unlike bonds. On the other hand, if the stock market is highly profitable, it can generate high returns. ...
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Credit inflation - Economics Dictionary

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Credit inflation is often used to refer to the case where excessive credit expansion causes water prices . Excessive credit refers to a situation in which a borrower who is unable to pay is credited and the bank provides credit beyond the limit of the deposit, indicating a credit expansion that corresponds to the output level. In the boom period, the credit expansion and the price of the ears occur at the same time, but the credit expansion at this time reflects the expansion of the reproduction and the increase of the transaction amount. Even at the end of the boom, when there is a limit to the accumulation of capital, credit still continues to expand. At this time, excessive credit occurs, and such credit brings the price of water for a certain period of time. In times of depression, if credits to be shrunk in response to shrinking reproduction are sustained at a high level supported by low interest rate policies or bailouts, excessive credit will prevent price declines fo...
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