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Martin asked in Social ScienceEconomics · 3 months ago

The Government talks about raising money through increased council tax and alike.... why dont they just print 'more money' ....?

I mean... money doesnt miraculously appear out of thin air on this earth, it comes from 'somewhere'... so when governments talk about 'raising money' through 'council tax/increase taxations etc etc', why dont they just 'print more money' ....?

3 Answers

  • JuanB
    Lv 7
    3 months ago

    You answer your own question.  You seem to know the answer so why ask?

    "money doesnt miraculously appear out of thin air on this earth, it comes from 'somewhere'."

    All you have to do is replace "thin air" with "printing more" and you see the answer. Printing more is thin air.  In order to be more money it has to come from somewhere.

  • Oiy
    Lv 7
    3 months ago

    To understand it, you might go back to see the differences between fiscal and monetary policy. The FEd will conduct the monetary policy,namely printing the money or QE. And the government will conduct the fiscal policy through taxes or borrowing. Both policies have their own limit, using the inflation target together with the acceptable unemployment rate. The FEd also has to achieve the stability more than growth, but the  administration would prefer growth more in this pandemic. So they don’t just print more money.

  • Pearl
    Lv 7
    3 months ago

    maybe they dont want to do that

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