The big question is what is called inorganic money, since the word inorganic does not come from economic activity or gross domestic production, this money is sent to be manufactured or issued by the central bank, when an economy's social spending is greater than its national income, it serves as an outlet for internal financing to pay wages and salaries and other fees, Another important factor that influences when there is a strong monetary liquidity in the circulation of cash, both in deposits in the banks, as well as in the circulation as a means of payment, also affects because there is the presence of inflation and La Moneda has losses of its purchasing value which makes it spend faster instead of producing it.
Another cause of why inorganic money is issued or manufactured is when the state economic model does not respond to society's demands, there are also fiscal deficits and there is no possibility of resorting to tax increases, as well as capital flight, which has an impact on the supply and the money supply in circulation, the most tragic thing is that this type of money only has a monetary value and has no support, which is the saddest case of this money of the amount of legal tender.
As it affects the GDP, in the following way reader friend, this macroeconomic variable represents the sum of the final goods and services produced in a country during a year, when its value is going to be calculated in it the sum of work salary and other tariffs is registered, as most of this was paid with inorganic money, which does not come from the gross internal production, there is already the first impact diminishes the GDP, and also when it is compared final goods and services not produced in the country, that also affects creating great level of inflation leaves us much to think about our economy.
