Why doesn't the countries in financial crisis just print more of their own currency?

to stabilize the crumbling economy, infrastructure, deal with in house disasters, routine maintenance of essential needs.


Is there some international law prohibiting that?|||Because it de-values the money...|||It's called inflation and affects international trade. If all countries did it to the same degree, it would have no long term effect other than to devalue all currencies and cause a lot of hassle in adjusting pay and prices. Indeed it does happen gradually, there are many more dollars in circulation in the USA today than just a few years ago.|||A paper currency would need backing of assets in physical form. Otherwise it would result in inflation and cost of good would increase. So unless your economy improves in true sense - meaning you produce more assets , printing more currency notes does not carry any meaning.|||It has to have something to back it up..like gold, jewels... Value.


paper is of little value.





the dollar would lose value and it would SURELY collapse then. We need things to back it up. Why do you think people are fighting over oil so much now?|||They do it all the time. That is why there is inflation. The more money you print, the less each unit (dollar) is worth. It's just so well know, nobody really talks much about it.|||Financial crisis is never due to shortage of 'currency notes', especially in today's virtual world!!|||Inflation would devalue the currency.|||because if a money is not backed by a valuable substance such as gold it would only depreciate the value of the existing money and bring the market down even further.|||Germany tried that before. It didn't work.