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Poor Economy: Why Doesn’t Tunisia Print More Money for Itself?2 min read

By Editorial Staff July 15, 2019
Written by Editorial Staff July 15, 2019
Print more Dinars

Printing more money would actually hurt that country’s economy more than help it. Well, allow me to draw an image for you. This is a pizza cut in 4 pieces.

Now cut the same size pizza into more slices.

Will it make you feel any fuller? No. You need a larger pizza size to make your slice worth it and fulfilling.

Money is the same, it needs economic growth for its value to increase. Printing more money without growing the size will make money worth less than before.

If you buy a soda bottle for 1 Tunisian Dinar today and tomorrow Tunisia prints double the amount of money, that soda bottle price will be 2 dinars. If they print 4 times the money then the price will be 4 dinars. This is called inflation and Tunisia’s central bank tries to keep the price at 1 dinar and if it raises, it will rise slightly more to keep your consumer index and purchasing power the same or aligned with your income.

This example is taken from a moment in time, because the value of the currency changes with supply and demand from markets or its reserves value items are changing prices too every second.


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