Is there a different view by political-scientist in history mention that printing more bill is different from adding few more zeros on the bill. I know some Africa country tend to doing that.

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    This question needs to be more focused on what exactly your asking. When this is done, it will be reopened – canadiancreed Aug 13 '12 at 1:31

You are confusing money supply with inflation. Increasing the money supply can sometimes (but not always) increase prices right along with it - this is called inflation. Inflation devalues the currency, and if it devalues too much, smaller denominations, like the penny in the US, becomes an impractical medium of exchange.

Increasing the money supply is a function of a central bank (or reserve bank) - they are not literally printing more money. The phrase "print more money" is poetic shorthand for a complex series of transactions between the government and private financial institutions.

If you massively increase the money supply, as Zimbabwe did, you will be in a situation where it will require printing new bill denominations, otherwise people will be paying for bread with wheelbarrows full of bills. More money in circulation results in more zeros on the bills.

This brings us to an interesting distinction - money and currency are not the same thing. I'm having trouble finding a link that explains the distinction that isn't gold-bug conspiracy theory BS, so I'll lay it out here.

Money is a stored value that is used as a medium of exchange - and in most modern economies, that value it is stored in two ways. First, it is stored as bank deposits, and most of the money supply is here, as most things are paid for using the bank - when you write a check, you are moving money from one deposit (yours) to another (the check recipient's.) You have spent money - and you did it without currency!

The other way value is stored is in currency - these are objects issued by a guarantor, most often but not always a government, that represent not only stored value, but a unit of account. The worth of these objects depends on many factors, almost all of them concerning the guarantor. If the guarantor increases the money supply, the worth of a unit of currency can sometimes (but not always) decrease in value. This requires new or replacement currency to be denominated at larger and larger units to be a practical medium of exchange.

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    Sometimes (particularly in developing countries) they literally are printing more money. In the USA typically we increase the money supply to make up for some kind of undesirable market tightening (which in theory should not cause much inflation). In developing countries, it is often done just to inflate away domestic debt. It doesn't hurt the decision makers any, as they can hide their assets in foreign currency. But it absolutely trashes domestic savings. – T.E.D. Aug 10 '12 at 13:37

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