Inflation
As you all know, there is a lot of problems in our country regarding rupees, but you do not know that almost every country is suffering problems related to currencies.

We all know that price of goods are increasing year by year but most of us don't know the reason behind this or how can we avoid this, because inflation is not going to stop. And in the coming time, inflation is going to increase so much that the common man will not be able to buy food properly from his usual salary. We all have been watching that rich people becoming more rich and poor becoming more poor. But we don't know why this is happening and the worst thing is that we don't want to know the answers of these questions and because of this ignorance we have become the slave of this system.

A Brief History of Money

All of you have heard about the barter system that in the ancient time people use goods as a medium of exchange instead of notes and coins. But this technique was not effective so people introduced gold and silver coins but there was a problem that the coins were heavy and can be stolen, so a group of people (who were jewellers ) finds a business opportunity in it. So they asked people to give their coins to them and they will keep them safely and for this they will charge a little amount. People found it beneficial then they started giving their coins to the jewellers And in lieu of coins, jewelers gave them an I.O.A, which was actually a piece of paper in which the number of coins was written.
After some time, the jewellers noticed that people were not withdrawing their coins and they came to know that the papers they used to replace coins were now working with people because people were convinced that these papers are real. Seeing this, goldsmiths came to greed and started making fake papers and started earning a lot of money. And those jewelers are banks today. This was the world's biggest theft which is happening today, the government and the bank can print as much money as they can.


So should we print more Currency?

Now you are thinking that more currency is beneficial for us, but you don't know that more currency leads to inflation as the value of currency decreases, high Supply of currency leads to decrease in demand and value.

Now you are thinking that more currency is beneficial for us, but you don't know that more currency leads to inflation as the value of currency decreases, high Supply of currency leads to decrease in demand and value.

It is said that money does not grow on the tree, but the fact is that today the modern banking system is producing currency at a high speed that a tree is not able to produce. You have no idea how money is made. You are thinking that a country can produce currency equal to the quantity of gold in the country. But no such thing happens today.


Thanks for reading. This article was bought to you by Hamari Yojana, an initiative by a Political Science student and a CA student. Stay tuned for more articles like this.
If you have any query, drop a comment down below.

Post a Comment

Previous Post Next Post