Obviously, the government can't afford the money, so the central bank needs to print it. But money is not printed casually. The total amount of money in a society should be the same as the total wealth of the society (the sum of all means of production and means of subsistence). Of course, this is an ideal state, and more often it is biased. The total value of money is greater than the total value of wealth, which is inflation; Less than total wealth is monetary tightening. Therefore, any economy without major problems is constantly changing between reasonable inflation and reasonable deflation (usually less than 5%) with the economic cycle.
Suppose the central bank really printed money, what would happen?
Everyone gets 1 million, so it is definitely impossible for everyone to deposit 1 million in the bank to collect interest, and it will definitely cost more or less. Such as buying a house, a car, furniture, clothes, computers, food, travel and so on. Assuming all the money is spent, there is a sudden demand for 1.3 * 10 16 yuan. But that's not all. Money didn't just disappear, but went from one person's pocket to another's. When another person gets the money, he will continue to spend it and send it to a third person's pocket, and the third person will trade it to a fourth person ... It seems that the transaction scale is1.3 *1kloc-0/6 yuan, which may be the multiplier effect in mathematics in the end.
However, the reality is much more complicated than this. /kloc-the consumption capacity equivalent to China's fiscal revenue suddenly broke out in 0/00, but the producers did not have the ability to produce the same goods in a short time. Even with this ability, I'm afraid the earth can't provide such huge natural resources (for example, people flock to buy houses and want to own two suites, but we simply don't have enough land to build so many houses). What does this mean? Explain that the supply is seriously insufficient. The most basic common sense of economics: insufficient supply will inevitably lead to the rise of commodity prices. The outbreak of such a huge consumption power will lead to terrible price increases. For example, the house price in Beijing may rise to 100 million yuan a square meter, potatoes will cost 8,000 yuan a catty, and a packet of spicy strips will cost15,000 yuan ... Eventually, the market will adjust itself until the price is adjusted to a reasonable range. Even if we get this10 million yuan, our actual purchasing power will not change, and even because of the violent market fluctuations, our actual purchasing power may have declined.
The actual purchasing power, to put it more popularly, is the comparison between personal income and price level. The growth rate of personal income is lower than that of prices. It seems that there is more money, but it is not enough to spend, indicating that the actual purchasing power has declined.
What is even more frightening is that the money is one-off, that is to say, everyone's spending power of one million yuan is one-off, but in order to meet the market demand, the investment of enterprises in expanding reproduction is real, and increasing production will never be one-off. Then when this huge purchasing power is gradually digested by the market, we will face another terrible situation: supply exceeds demand, which is seriously greater than demand. Prices will fall rapidly, most enterprises will fall into bankruptcy, and the whole society will fall into unemployment frenzy and economic depression. People who have been frantically sweeping goods may not even be able to afford a catty of pork by then.
In addition, there will be a huge amount of hot money entering the stock market, housing market, bonds and futures, which will turn the financial market upside down and eventually lead to a serious financial crisis. The financial crisis will inevitably affect the real industry and aggravate the market malaise and social unrest.
Therefore, money is not printed indiscriminately, and it is not distributed indiscriminately.
Nordic countries with high welfare have the habit of giving money, but the money comes from the government's tax surplus, that is, the government's fiscal revenue is not used up, and it can also stimulate the economy by giving it to citizens for consumption. But the premise is that money does not appear out of thin air, and the scale is very small. If we split it equally, one person will die, that is, hundreds or thousands of dollars, which is only a week's salary, and it will have little impact on the market.