Surely just printing more makes it devalue so if all the lost and damaged was identified would that not increase the current circulation value
In: Economics
The government makes all the money, so it knows how much is out there. It also collects old money for disposal/recycling. This should allow the government to have a pretty good idea of what is out there. Sure, some will be hoarded, lost or damaged. But, it’s unlikely to be a meaningful amount that would affect a relatively healthy economy, especially since so much of it is not based in cash. If they wanted to have a more accurate idea, they could get samples of circulating cash. If the proportions are off from what is expected, the total amount can be adjusted accordingly
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