by littl_foggy on February 11th, 2007

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Why dont the goverments just print themselves more money instead of barrowing it?

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by canadianhelper on February 11th, 2007
The amount of money available is SUPPOSED to represent the productive capacity of the societies they represent. Printing more without increased capacity undermines the currency's value and would lead to runaway inflation.

By borrowing money it puts a 'check' on governments because they can only borrow what other people think they can repay. In this way governments are prevented from overspending. (In theory).
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Why dont the goverments just print themselves more money instead of barrowing it?

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