How much money is there in the world and how is it regulated?
How is it decided how much money there is in the world? Who keeps control of this and will this always be a set amount? Otherwise how do we know is a country has so much money when they could have just printed some off, or changed some figures on a computer?
Answers:
Remember that each bank and each government organisation can only spend as much money as it makes. Neither can "create" new money so easily, as their accounts have to by law show exactly where all the money they got in the year came from (which has to match up with what the amount the other person gave you). The only exception is the central bank, which controls the amount of money in circulation and the interest rates.
International bodies like the UN, the World Bank and the OECD publish estimates of each country's GDP, based on census statistics and tax returns collected by the country governments.
It therefore aims to report in total how much money was earned by all the individuals in- or residents/nationals of that country. This sum is divided by the national population to give the per capita income (a statistic that could be very misleading if say 100 people earn $20 billion a year each and the remaining
850 000 only earn $90 a year each, as the average would be in the thousands rather than the $90 typical earnings).
No national or international organisation knows, or needs to know exactly how much money is in circulation in that country. They only need to know the inflation & such statistics in order to decide how much money to print and what interest rate to have, which they measure through surveys & estimates.
But remember that each currency has a value that changes all the time, and that increasing the amount of one currency in circulation is akin to reslicing a six slice cake as a twelve slice cake:
the increase in money in circulation swiftly causes the value of the currency to take a tumble, hence (if you double the amount of money in circulation) two million dollars BEFORE the extra money is printed can buy you the same amount of stuff as ONE million AFTER it is printed.
Eh?
I don't know but that is some BIG question you've got there.
In my opinion..not a compilation of acquired knowledge from reading books, There is alot of money in the world..Which is regulated differently from nation to nation by a treasury department of some sort. For a country to have too much money is for that country to decide. Third world countries living in poverty look at the U.S. as a nation rich with wealth and oppurtunity. At the same time..those same people may be rich in things that money cannot compare to, such as family, spirituality, and the abilty to look out for one another. Good question
We will never know as forgers are printing more even as we attempt to answer this question.
There is too much money but it is not enough to satisfy the majority of people. I think each country regulates its own money.
well it is not regulated globally, but by national central banks. just for comparison daily financial transfers are in the magnitude of $1 trillion.
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Answers:
Remember that each bank and each government organisation can only spend as much money as it makes. Neither can "create" new money so easily, as their accounts have to by law show exactly where all the money they got in the year came from (which has to match up with what the amount the other person gave you). The only exception is the central bank, which controls the amount of money in circulation and the interest rates.
International bodies like the UN, the World Bank and the OECD publish estimates of each country's GDP, based on census statistics and tax returns collected by the country governments.
It therefore aims to report in total how much money was earned by all the individuals in- or residents/nationals of that country. This sum is divided by the national population to give the per capita income (a statistic that could be very misleading if say 100 people earn $20 billion a year each and the remaining
850 000 only earn $90 a year each, as the average would be in the thousands rather than the $90 typical earnings).
No national or international organisation knows, or needs to know exactly how much money is in circulation in that country. They only need to know the inflation & such statistics in order to decide how much money to print and what interest rate to have, which they measure through surveys & estimates.
But remember that each currency has a value that changes all the time, and that increasing the amount of one currency in circulation is akin to reslicing a six slice cake as a twelve slice cake:
the increase in money in circulation swiftly causes the value of the currency to take a tumble, hence (if you double the amount of money in circulation) two million dollars BEFORE the extra money is printed can buy you the same amount of stuff as ONE million AFTER it is printed.
Eh?
I don't know but that is some BIG question you've got there.
In my opinion..not a compilation of acquired knowledge from reading books, There is alot of money in the world..Which is regulated differently from nation to nation by a treasury department of some sort. For a country to have too much money is for that country to decide. Third world countries living in poverty look at the U.S. as a nation rich with wealth and oppurtunity. At the same time..those same people may be rich in things that money cannot compare to, such as family, spirituality, and the abilty to look out for one another. Good question
We will never know as forgers are printing more even as we attempt to answer this question.
There is too much money but it is not enough to satisfy the majority of people. I think each country regulates its own money.
well it is not regulated globally, but by national central banks. just for comparison daily financial transfers are in the magnitude of $1 trillion.
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