Finance, Forex and Investments

What will happen to the economy of a country if there is a low production of money in their central bank?

Give some negative effects to the economy of that country.

Public Comments

1. how can people buy? hence there inability to make a purchase undermines and to a point stifles economic activity within any country. money is also a commodity, hence subject to the same rules of supply and demand.
2. This is hard to answer. In the long run, there should be no effect if the velocity of money can compensate for the money supply issues. If it cannot then growth would be retarded by higher real interest rates required if people are hording money.