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I would like to ask this question on MS:

"How would you explain to kids what happens when a Central Bank prints more money? It's simple to explain that it saves the banks and the States by their huge debts, because it lends them the new printed money, but what are the side effects of this on the economy?

  • inflation, but why?

  • the currency devaluates against other currencies? If yes why?"

BTW: I would like this to be explained to me too, but almost in the same way you would explain it to a kid.


EDIT: maybe it was obvious why I'm asking here if it's possible to ask such a question on MS. The reason is that I suspect it might not be an acceptable question because it's an economic question. Actually I would like to understand the QE side effects to make previsions of where to invest money, but I think it's quite useless to add to the question "I would like to understand the QE side effects to make previsions of where to invest money" just to avoid the question to be closed.

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https://money.stackexchange.com/questions/tagged/economics - They can exist.

I think you just to not make it very academic. Try to phrase it around "As an investor, what does it mean and why do I care". The fed printing money certainly has impact on a trader's portfolio and their expectations.

What the US is doing compared to what the EU is doing will have big impacts for folks who invest in foreign markets.

A person shouldn't invest if they don't understand. I would say the fact that QE is/was such a big topic in the news means it isn't so academic anymore.

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