How does inflation work?
In: Economics
money is basically, a number from a big pond made out of bigger numbers. If the pond gets bigger, then the numbers you have have the value of is closely related on how much of that amount of “pond” you have. If the country has, lets say 100 units of gold and you have 1 gold, then you can consider yourself rich. If the country has 10,000,000,000 gold and you have 1 gold, youre poor. The way that “pond” of gold gets bigger can be either by an increased amount of money being made by the country (by trade or companies) or by the country fabricating it (creating extra currency). It really doesnt matter which type of government you have, this rules are the same. The type of government just rules the way the pond is obtained and distributed.
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