money printing strategy

Money Printing Strategy Money is a commodity which gives you the power of purchasing as a medium of exchange.

Money is printed by central bank in all over the world on the basis of Imports, Exports, Growth rate of economy & Gold Reserves.

Money Supply is monitored in two types of aggregates:

(1) Short Term (2) Long Term

Short Term:

Short term monetary measures of printing include the liquid assets evaluation for example currency evaluation & those assets evaluation which are easily convertible in to cash.

Long Term:

Long term monetary evaluation includes evaluation of Fixed Assets

& GDP (Gross domestic product).Fixed Assets evaluation includes

Evaluation of Property like Gold, Natural Reserves (Goldmine, Petrol & Gas Reserves, Ports) etc.

GDP calculation can be done either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). After subtracting expenses from income

The amount of which remains is called profit or income.

If a country has got good reserves & strong GDP that country will print less new currency notes because its currency has a strong value in foreign exchange rates.

Money is printed on specified piece of paper and it has a significant design. Currency notes include the picture of founders & legends of nations that picture reflects the dignity & ideology of the nation. Money value changes from time to time for example in a weak economy if you are buying 1 kg sugar of Rs 100 now, next year you will have to buy 1 kg sugar of 130 Rs. Devaluation of money will lead to printing of new currency notes.

GDP per capita income of a Pakistan is 1513 $ it means if we divide total income of Pakistan into total population one Pakistani as an average earns only 1513 $ in a year. While united states per capita income is 46407 $.

State Bank of Pakistan has to a print a lot of new currency notes every year because of a weak economy, Pakistan needs to strengthen its

economic growth to increase the value of Pakistani rupee. ~ Muhammad Hasan (muhammadhasanmian@facebook.com)