Project 1 quantitative skills business | Quantitative Skills Business BUS-210 | Thomas Edison State University
Executive Briefing: The Amount of Currency in Circulation
The amount of currency circulating within an economy is a key indicator of economic stability and growth. In recent years, central banks around the world have taken decisive action to increase the money supply by increasing the number of banknotes and coins in circulation. This has been done as a measure to stimulate spending, reduce interest rates and boost inflation levels. Several economists have argued that too much currency can cause prices to rise uncontrollably which could lead to an unsustainable situation down the line.
On the other hand, bankers note that having too little money circulating is just as dangerous as it can lead to deflationary pressures which could put further strain on economic recovery efforts. It is important for governments and central banks alike to be aware of this delicate balance so they can make informed decisions about how much currency should be in circulation at any given time.