Modi package 2.0

[HugoStrange]

23 minutes ago, Picheshwar said:

Paytm ni promote cheyyyadaniki demonetization chayyala

 

the reason for demonitization is for taxes not for black money. eppudu ekkuva taxes kaduthunnam andaram. He know about the money movement now.

[karthik25]

45 minutes ago, Assam_Bhayya said:

There is no such restrictions or mandate to show gold reserves, Govt can print any amount of money they want.

But they won't do it, coz if the currency is printed earlier than the growth of real output it reduces the value of currency and this will also cause inflation. Govt will print money when they cannot finance their borrowing by selling bonds. If there arises hyperinflation then its like damaging to economy. See Zimbabwe and Indonesia case, do they have that much gold reserves to print millions denominations. . . . . a bread loaf costs millions in their currency now

Yes.. there is no restriction. But generally government doesn't do this to avoid inflation problems. 2008 crisis tarvata.. India also printed lot of money to keep the lower end of the economy pyramid moving. Loans kuda full ga icharu.. Daani valla immediate GDP growth llo decline kanapadaledu... but it resulted in 10% inflation, 5% growth around 2013-14 and eventual NPA crisis. Indiscriminate money printing is never a good option without increasing demand and supply.