why RBI does not print unlimited notes and makes everyone rich?

Why RBI does not print unlimited notes and makes everyone rich?

Hello guys welcome to another post of my blog.In this post i would be telling you that why RBI doesn't print unlimited amount of notes makes everyone rich.

At first let me tell you that RBI has the right to print unlimited amount of notes as per need but it doesn't let me tell you first what is currency.

What is currency?

Currency is medium to buy goods that the other person have. As per norms the buyer will agree to sell goods if the person has currency with him.
If a person has lacks of rupees it will remain unproductive if he/she cannot buy goods with it.

Why RBI does not print unlimited notes?


Let me tell you that RBI has the right to print unlimited notes in India but it doesn't this is because of certain reason the reason I will tell you in the end.
Let me tell you one interesting case which occurred in Zimbabwe.
the government of Zimbabwe planned to print unlimited notes for the people of Zimbabwe to make them rich.the Zimbabwe government did so and printed a large amount of notes for the people of Zimbabwe.
Zimbabwe even printed notes of millions.
As a result everyone in Zimbabwe became millionaire but after some time there were some drastic changes in Zimbabwe.Let us consider those drastic effects:
A person in Zimbabwe has to carry bundles of notes if he/she want to buy bread or other goods.the cost of small products increased suddenly as because everyone was rich so they were not doing any kind of work as a result the production decreased and the cost of small products increased. this was indeed a drastic change as farmers were not ready to work because they had enough money as a result the production of crops decreased and the cost increased.
Considering these effects the Zimbabwe government planned to remove all those notes and planned to start a fresh with a revised economy.


India does not print unlimited notes as because they understand their duty and they circulate currency according to the GDP.
As they know if they the people of India would be Reich then no one will do work as a result production decreases and cost increases.
That's why RBI doesn't print unlimited amount of notes.


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