Eli5 In fiction, when large sums of cash or money are destroyed, what would the real world implications be if it was done in real life?

Question

For example in Dark Knight or Gangs of London, what would be the knock on effects in the real world if 100s of thousands/millions was destroyed on the real world financial system?

In: Economics

Answer 1

They print more.

Paper money is supposed to represent a value of gold. Not always the case. Theoretically, a nation could print up unlimited amounts of paper money, but it won’t be worth anything if there isn’t a gold reserve (or other reserve of value) to back that up.