eli5: What does it mean by the state ‘artificially maintaining a currency’?
In: 5
Pick any single measurement for how a person is doing financially. Bank account balance, size of their house, how old their car is, how much jewellery they have, their 401k balance. Any single indicator is open to being manipulated by actions that don’t make financial sense except to influence that indicator.
For example you could take a cash advance on your credit card to boost your bank account balance.
Why would you do that? If ppl are following your account balance and making other choices about you based on it.
Russia is doing something similar and using complex financial steps to boost its currency. But like a credit card cash advance all these steps are very, very, very bad financial choices.
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