I just genuinely don’t understand how it works, like couldn’t you realistically just creat more money. Isn’t it just like a number in a bank account? Am I really dumb?
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It’s been a long time since I learnt about this in sociology, but I remember its partly to do with countries borrowing off of other countries. So say a poorer country borrows millions from a richer country, they are then in debt for quite a while. Rich countries also borrow from other rich countries, for example during an economical recession or some sort of natural disaster. Eventually over the years, everyone just ends up in debt to everyone. You can’t print a tonne more money as it doesn’t make the country any richer, it just adds more money into circulation. If everyone had more money, they would buy more crap, which means the people selling that crap would stick the prices up far higher. Eventually you’d just end up in the same position as you were before printing the money.
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