The harm of issuing too much money:
(1) the impact on economic development. The rising price of inflation distorts the price signal, which easily leads producers to go astray in production, leads to the blind development of production, causes the abnormal development of the national economy, makes the industrial structure and economic structure abnormal, and leads to the imbalance of the whole national economy. When the abnormal economic structure caused by inflation needs to be corrected, the state will inevitably take various measures to curb inflation, leading to a sharp decline in production and construction and economic contraction. Therefore, inflation is not conducive to the stable and coordinated development of the economy.
② Impact on income distribution. Inflation and currency devaluation have led to a continuous decline in the living standards of some low-income residents, and it is difficult for the majority of residents to improve their living standards. When inflation persists, it may cause social unrest and unrest.
③ Influence on foreign economic relations. Inflation will reduce the export competitiveness of domestic products, resulting in the outflow of gold foreign exchange reserves, thus devaluing the exchange rate.