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
Lost and damaged money can still eventually be spent so only money officially removed from circulation and disposed of counts. The vast majority of wealth isn’t in the form of currency anyway, the buying power of a particular currency is really just a gauge of market confidence and it’s not entirely the issuing of new currency itself that plays the entire role in inflation. It’s way more complicated than that and removing currency from circulation would not automatically accomplish the reverse.
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