What determines the amount of money a country can print?

Answer 1

Answer

A countries central banking system generally decides what amount of money a country can print. Contrary to popular belief, gold or precious metals are irrelevent and uncessary to give money a value. The only reason that gold (or other metals) have value is because people have accepted them as having value. Just as people may accept that an apple might have some sort of value or a banana might have some sort of value. Gold (and other metals) are a scarce resource and therefore had been accepted as a medium of echange long before paper money.

A medium of echange is necessary for two reasons.

1. People need to have a base from what to compare things to. That is, it is difficult to determine how many apples equal a banana or how many cars equal an airplane for example. We do however know that say an apple is worth $.50 and a banana is worth $.75.

2. People need a way to store their productive efforts so that they can be used in the future as necessary.

A country should generally wish that their paper money is still a scarce resource (that is the country's bank controls the amount printed and makes it difficult to copy). In this way money can be used to reimburse an individual for his production efforts and then he or she can use this money to pay someone else for producing something else they don't have but they need.

Generally speaking a reputable country will produce enough bills and coinage to 'meet demand' - naturally money is always 'in demand' so this means replacing bills damaged through use. In the case of the US it should be noted that most 'money' doesn't exist in the form of money, and as a matter of fact most currency is actually held outside the country by foreigners.
If too much money is printed or created holders may fear loss of value from dillution and start selling dollars to buy the currency of other countries. Like a stock the dollar will fall until foreign investors support it by buying American food, corporations, resources, and goods and services again.

Answer 2

it costs money to print money and it costs a lot of resources

they can but the last time a country just decided to print money was Germany diuring World War 1 the more money a counntry prints the less the money is worth in Germany during world war 1 they printed so much more money to reverse the war debt that they cased inflation which is more money of less value because of the inflation people would take a wheelbarrow full of money just to buy a loaf of bread and some milk because the money is so worthless.

Answer 3

The amount of paper money a country can print depends on the country. Normally countries do not print more then what they have in gold but it depends on how much the people in the country believe in the worth of the money.

Answer 4

Ordinarially speaking it would be the central bank of that country;

Federal Reserve

Bank of England

European Central Bank, etc., etc., etc.,

In some countries it may be the treasury that decides.

Answer 5

Is it that the Total GDP of a country determines the quantity of Money to print for circulation.

Answer 6

The amount of money a country can print is determined by the gold reserve maintained with the Central Bank of the country for a balance.

Answer 7

The central Bank.

Answer 8

The US Department of the Treasury