Why printing money causes inflation?

This is due to the fact that if an economy has a bigger money supply than its actual output, inflation will result. The currency will lose value as a result of this inflation. The price of things will rise if more money is printed because families will have more money to spend on items.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
VOICEOFSHARK

VOICEOFSHARK

Hotelier, Blogger, Entrepreneur, Husband, Psychologist and educator.