How RBI prints money on what bases? other than changing old money to new money. If price increases and tax increases on what bases they will print more money. Please explain in simple words

  • $\begingroup$ Please ask the question specifically on ONE issue. $\endgroup$ – mootmoot Jul 7 '17 at 7:42
  • $\begingroup$ @mootmoot Okay changed $\endgroup$ – Guest Jul 7 '17 at 9:31
  • $\begingroup$ Central Banks typically print banknotes to meet demand, and sell it (creating a liability for themselves) in exchange for assets such as commercial bank reserves held at the central bank, government debt instruments, foreign currency, or existing banknotes. India is unlikely to be any different. If demand increases then they will typically print more banknotes, while if it reduces (e.g. in the switch to an electronic banking economy) they will take in banknotes and print less $\endgroup$ – Henry Jul 7 '17 at 10:21

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