Like why can’t some country say something like “our country’s currency value will be 200 times that of US dollars ” . And who determines this value or how it is determined. And why it constantly changes.
In: Economics
Value is determined by people. How much faith people have in said currency. People will lose faith when a country goes into debt and has to print billions/trillions to cover debt payments and other expenses, which is a reason why many are concerned about inflation (de-valuing) of the US dollar right now.
There are examples in history of inflation and hyperinflation that can be Googled quite easily.
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