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?
In: 4
Money needs to be backed by something like gold for example.
Actual paper money isnt worth anything. Its just a representation of gold. So instead of lugging around a truck full of gold bars, you just carry cash instead.
So that means you cant just create more money. If you do itll lead to inflation, meaning the currency will become less and less valuable.
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