make drives inflation much higher. While the supply of money increases, the supply of goods remains the same. So, the competition for each goods increases, leading to increased prices, which in turn leads to inflation. Excessive inflation leads to distortion of prices and incomes, and can cause an economy to operate inefficiently.
It creates effect with international trade. Newly printed money can be used by the government and consumers to import new goods and services from other countries. These goods and services are more or less coming in for free. The problem is that sooner or later other countries end up getting sick of exchanging goods and services for what they feel are worthless sheets of paper.
Many countries get frustrated with attempts at currency manipulation of U.S. dollar like quantitative easing . They feel that these practices reflect an inability by the country to generate real growth and to honor debts.
and Quantitative Easing maybe make
Encourages debt. Another key worry about quantitative easing is that the increased money supply and low interest rates encourage additional borrowing by both consumers and businesses. While some debt can help stimulate an economy, wanton loans and excessive debt can further exacerbate an already fragile one. Moreover, quantitative easing can lead to an increased government deficit.