Why can’t our country print unlimited currency notes to improve the Indian economy ?

Why can’t our country print unlimited currency notes to improve the Indian economy?

Lets understand below 

Because then it will be just a piece of paper.!

First, we need to understand the whole history behind money.
Now, let me tell you a story about you and your friends.

Let us say you and your friends (Anku, Banki, Danku, Tinku, Chintu, Bittu) decided to spend a long holiday in a far far off island where nobody else is there, only you people to spend a year.

This is a beautiful island. You construct 7 tents (houses) to live from the material you found on island. Island is full of sand, trees, some animals, and lot of peculiar stones in one corner.

All of you were enjoying it until you started facing troubles in doing household work daily, inevitably. You had to find food. You had to cook it. You had to wash the dishes so that you can eat it again. You had to make spices. You had to wash clothes. You had to get water for daily work. You had to protect yourself from animals.

Anku was a sharp shooter, he could easily get the food, but could not cook, nor was he well versed with any other work. Banki was a great cook. She cooked delicious. But she gets so tired that she can't do other work. Danku is great at pulling water from well. Only Tinku knows how to make the spices. Chintu is a fighter, who can fight the deadly animals and keeps the group safe. Bittu can get water daily.

So, you started following this system. Whoever was expert in whichever work started performing that work and group started living harmoniously.

But, then differences arose. Banki complained that her work is more and Chintu just relaxes. His work is very less and it is not fair. Similarly other allegations came. Tinku had to make spices only once and he relaxed for a month.

So, you all sat down and decided to solve the problem. Chintu promised to Banki that he will not only protect from animals but also get the coconut juice for her from the coconut trees daily and in return she would cook for him daily. Banki withdrew her allegation. This caused unrest in other group members. Danku raged. He said he brings water too, it may not be as tiring as cooking daily but it is more than protecting from animals once in a while. Chintu promised he would bring him coconuts once every alternate day.

So, somehow you all made your work equal and started living happily ever after.

You started living on the island forever.

But then something terrible happened.

Two of your friends fell in love, married and KIDS!! 

Two more, love, married, KIDS!!
Their KIDS, their KIDS, their KIDS and on and on for several centuries.

People grew, professions grew, variety of work grew.
Now, it was difficult to distribute equal work among so many people. So, your kids turned their eyes towards the infinite peculiar stones in the corner of the island.

They started keeping track of the work by assigning number of stones. If you cook, that means you get 10 peculiar stones daily. If you bring water, you get 8. If you shoot animals, you get 5. This way, people knew what amount of work they had done.

But then Banki's great grand kid Pankhi said if people want her cooked food, they have to give her 15 stones and not 10. Somebody went there, and got 5 more. Similarly, people kept raising their rates. But it was of no use as the stones were infinite and people would just go there, pick up stones and give it to others.

This was when your brilliant great grand-kid found the loophole in the system. It was not working because it was infinite and people didn't give any value to it. So, he decided that let's lock all the peculiar stones down and we will open only 100 stones everyday no matter what. These will get distributed among people according to their work.

Now, people started valuing stones. They did not raise their demand of stones arbitrarily. Work was also balanced via stones and thus your generations lived happily ever after.

RETHINK THE STORY NOW !

The group of friends was how the human race started
The fighting over who is doing more work and who is doing less bred the concept of money.
The stones is MONEY.
Thus, MONEY is nothing but a promise that I will do this work in return of the work done by you. Even the currency says "I promise to pay the bearer..."
If you can promise using something infinite, then it will lose its value. Nobody will trust your promise.
Thus, you need something that is finitely produced at a time to ensure your promise has a value.

Economy is a measure of purchasing power, living standards of people in the region. Thus, infinite money does not mean you can force anybody to do your work. Because he also has infinite money.

Hence, we cannot just print money and raise economy