Have you ever wondered why our government does not print money as much as possible and distribute it to the poor ?.., honestly that was my question since i was teen, and when I went to college and learned about economics especially macro economics, I finally got the answer that we can't print money as we like because it will cause inflation.
but i was still wondering, why printing money could cause inflation? I then looked for information from various media such as articles, YouTube and etc. and i finally understood that do printing money as we like and distributing the money freely to the poor will not solve anything. an imbalance between the amount of output (goods and services) and the money supply will occur. where if there is much more money in circulation and the angknya is no longer tolerated, it will cause the price of output (goods and services) to rise significantly. so indirectly the value of money itself will decrease. and I think this makes a lot of sense to me ... and maybe you guys as well ..
and a few months ago I found an interesting video on youtube it's Economics Explained Channel and what is discussed on this video completely contradicts with what I've learned before. .
in this video explains about MMT (modern monetary theory) which is the new approach in managing the economy. So the video explains that MMT is the answer for the failure of the current conventional economic system, where MMT offers many approaches that contradict current economic theory and claims that the approach offered by MMT is more beneficial than the current economic system.
and one of the views of MMT that appealed to me was that printing large amounts of money would not result in inflation and when I found out about that I wasn't so sure at first but after thinking deeper I could understand a little bit what this theory meant..
Printed money will have a positive impact if the money is given to economic sectors or economic projects so that it will keep purchasing power, businesses exist, and the economy continues to run well. and the money will not be given to sectors that are not economy sectors such as giving millions of dollars to the poor for free. and I think this way maybe better than the country making money from debt..
share your opinion about this vidio, and if you already knew about the MMT theory please comment bellow so we could know about your perception about this theory so far..thank you..
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