Finance, Forex and Investments

Why can't the Indian government get more money printed by RBI and finance our Infrastructure with it?

I understand that increasing money supply would add to inflation. But what if the money was used by the government for infrastructure building. Would that also have a similar effect of increasing the inflation?

Public Comments

1. If the government prints an excess of money, no matter what the money is going toward, it results in devaluation of the money as well as hyperinflation. Hyperinflation happens when the inflation rate is over 50% per month, although it can get much higher - around a sextillion % per year in Zimbabwe currently. A good example of printing an excess of money is Germany, post WWI. The government had lost the war, and had to pay reparations to other countries. Germany decided to make that money by printing more money. The value of the currency plummeted, and people literally burned cash to heat their homes because it was cheaper than wood.