Money has began to be the other problem in this period of pandemic. Most of the people don’t understand the concept of money, that why most of the countries are scared to be in lockdown just because money won’t be in circulation.It is true that the circulation of money will fail since every thing requires money to run, in this period of pandemic we can find that money is needed so badly to be fixed in unplanned budget at the same time the circulation goes down for the reason money goes in one sector. This becomes a big problem to everyone, will the government have to print more money?
Before thinking whether the government should print more money to solve problems let us look on concept of money.
Money: we can simply define money as any thing that has value and acceptable as medium of exchange.
Main things you should know about money.
Measure of value, let me take you to barter system were people exchange goods for goods, were a cow can be exchanged with 1kg of maize the value of cow was big compared to maize. Money will tell whether the the good or service is of big or small value
Money should be acceptable, the recognition of money mean it is accepted to be used as medium of exchange by a particular country and be known by other countries as well.
Money should be durable, when we say money is perishable mean cannot last long and cannot be used for exchange, it has to last long to be accepted.
Money has to be scarce, if we could find money any where it could be so hard to measure the value of the commodity, everyone could have money any time when money is not scarce. Everyone is struggling to find money since it is not found so easily.
Divisibility, money should be capable of being divided into small units so it can measure the value of small commodities and services.
Portability, most of people move from one place to another so they require money with them so money should be easy to carry and transported.
I think now we are on the same phase of understanding the concept of money. Money is found to be everything in this world where without money almost a lot of things will fail and lead to depression in the economy of the country.
COVID-19 has created a condition that operation of many companies and the government sector not to operate due to the pandemic. This has led to failure of the circulation of money because most of the government sector and other companies have to concentrate on eradicating the Coronavirus pandemic .
Let's find out if the government will print more money to improve and solve the current situation.
If you analyse the qualifications of money which led you to a correct and convincing information and good understanding on money concept.
But the other thing to keep in mind, is about the economy being influenced by money too, if inflation occurs, can the causes of it be the supply of money which is in excess? The price of commodities and services will increase and cause inflation. All these will make the government not to print more money they will not supply excess money because it will raise more problems to the economy and country as well.
According to your view, Will you advise the government to look on the other side of the coins..?