Emblem(영어토론)

Paper money is much more interesting and valuable to other pieces of paper. In fact, people can't eat it or make something. The reason is that while other papers are not, the government made the bills and designated them as official currency. Then again, what makes hundred-dollar bill worthwhile depends on how much or less the central bank makes it. The central bank doesn't make too many bills. If central bank makes too much money, the total amount of money circulating in the economy will increase faster than the total value of goods or services, and the same money could buy less of the same goods. This is called inflation. On the other hand, if more goods and services are produced, the value of the dollar will increase. This is called deflation. This stimulates businesses, but encourages people to overconsumption or hoard daily necessities. Deflation, however, makes people have money and the decline in consumption reduces corporate profits, resulting in a lot of unemployment. As a result, consumption is reduced further and the economy is reduced. So many economists say that while excessive inflation and deflation are dangerous, small and sustained inflation is necessary for economic growth. The central bank uses huge amounts of economic data, such as inflation rates and unemployment, to determine the circulation, and to keep inflation stimulating growth and keeping employment afloat. The central bank not only determines how valuable people's bills are, but also their chances of finding or maintaining a job to earn them. Therefore, the value of money depends on how much money the central bank produces.