Dec 23 2015, 11:58 PM
Mr Lee proposed a peg systems that every dollar is pegged together with a basket of foreign currency.
every dollar you have in your country is fully backed by an equal value in foreign currency as far as i remember "Singapore Story". There is very little room for $$$ printing. Thus,
this will prevent country from over spending.
But Malaysia boleh need more $$$budget so that more highway can be built, buildings can be built, etc... can be build.
However, Mr Tan goes for the central bank approach. Once Mr Tan left the finance ministry, with the discpline and system in place, over spending is possible. the downfall begin.
Even if Mr Tan agree on the peg SGD, Brunei Dollar and Ringgit, eventually some other politician will disagree to it very quickly I think by 80s.
in the early years, the bank note was printed oversea. you can see the symbol Thomas De La Rue, US bankNote, Canadian Bank Notes, "Thomas De La Rue", "Bradbury Wilkinson & Co", "Harrison And Sons", "BA Banknote", "United States Banknote Co", "CanadianBanknote" or "Giesecke & Devrient".
After financial crisses 1999, the series by year 2000, mostly printed in Malaysia from what I know. better quality control.
QUOTE(METALRAGE @ Dec 23 2015, 12:25 PM)
On the original question by TS: "How does Malaysia print their money?"
For clearer understanding, there are 2 types of money that can be created:
1) Base money (aka hard currency)
2) Fiat money
Base money is the actual amount of currency (money backed by real notes / coins etc.) plus the "cannot be lent out" reserves that banks must keep with the central bank.
Fiat money is "fictitious" money that only exists as digital accounting entries. It is created as a result of bank lending (you can read about it on the internet how lending creates money). Fiat money adds to the money supply without having any real physical currency.
When you say print money, usually, it means creation of new base money. It is achieved via a mix of (you guessed it) printing new currency and distribution to the wider economy via central bank lending to commercial banks or governments.
---
All the other discussions here re. inflation, SG / Msia debt etc is irrelevant to your question.
For clearer understanding, there are 2 types of money that can be created:
1) Base money (aka hard currency)
2) Fiat money
Base money is the actual amount of currency (money backed by real notes / coins etc.) plus the "cannot be lent out" reserves that banks must keep with the central bank.
Fiat money is "fictitious" money that only exists as digital accounting entries. It is created as a result of bank lending (you can read about it on the internet how lending creates money). Fiat money adds to the money supply without having any real physical currency.
When you say print money, usually, it means creation of new base money. It is achieved via a mix of (you guessed it) printing new currency and distribution to the wider economy via central bank lending to commercial banks or governments.
---
All the other discussions here re. inflation, SG / Msia debt etc is irrelevant to your question.
Quote
0.0175sec
1.02
7 queries
GZIP Disabled