what? my dear, how old are you? do u really think Indian government can print as much money as it can? Then why RBI isn't printing money seamlessly and supply to poor and middle class Indians so that we all roam around the streets in Mercs or Jags? Now you should read this(you may feel bored for this long reply)
What is Money?
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given socio-economic context or country.
So...
more... why can't we print more money and repay all debts, buy all stuffs and everyone is happy???
Because of this -
Say, a country has a total produce or goods worth $1 Million. And, the country's monetary authority(RBI in India) decides to increase the money supply, say double the money in circulation. This means that everyone's wealth is now doubled. This means that everybody can afford more i.e. they can buy double of what they were buying previously. So everybody will want to spend their money and buy stuffs (Rise in Demand). But remember, the total produce of the country is still $1 Million. So, the producers realizing that everybody is going to buy their products will exploit this opportunity to raise the prices resulting in overall price rise or Inflation. i.e. An economy which was worth $1 million is now worth $2 million, even though the total number of goods is still the same!
So you see that printing more money might make people richer but it will also make goods more costlier that People getting rich will be just be an Illusion and nothing else!
This also will lead to a fall currency value. How?
Say initially, the exchange rate of the same country was $1 = 10 units. But now, everybody has more money (Thanks to extra money printing!) but the amount of $ is still the same. So, the $1 = 15 units(say) which means the country's currency has weakened. You will have to pay more units of currency to get $1 than you earlier paid.
This can cause unemployment. How?
Since prices have risen all over, consumers will now not be able to manage the households with their current salaries( As you can see, salaries don't rise without a good appraisal cycle!) ad hence, they will demand for more wages. The firms and offices will not be able to meet the rising demand for wages and start cost-cut measures by laying off workers!
All of this will in turn will slow down the economy!
So you see, Its a full cycle and that's why Central banks have to be careful on increasing or decreasing the printing of money.
Now in simple words
Suppose you have a cake. You hand out tickets to people so they can each get a piece. If you hand out a thousand tickets, either you're going to have to slice the pieces very, very thin, or a lot of people are just going to have worthless tickets. If you hand out just two, each person can have quite a bit of cake. The value of the tickets, then, depends a lot on how many you hand out.
That's basically what money is. It's a promise to pay from the government. You get the money and you can trade it with people in that country for stuff. And just like with the cake, if suddenly tons of people have money, either the money ends up being worth very little or most of the people with money get nothing for it.
A good example of this from history was Germany in 1922. Faced with a sagging economy and forced to pay massive debts as reparations for World War I, the government started printing money as fast as they could to meet these demands. Paper mills and printing presses were LITERALLY running as fast as they could night and day. Over a period of six months or so, the value of the German mark dropped 3.7 MILLION times! What you could once buy for a mark now cost four million marks. People literally lugged around suitcases full of money to pay bills. Similar things happened in Zimbabwe due to hyperinflation and the govt was forced to abandon its currency in 2009. Still Zimbabwe don't have any official currency and currencies of other countries are used there. Absolutely crazy stuff.
