if we always keep producing more goods why does the value of a dollar go down instead of up?

Question

Is it because governments are irresponsible and waste money by printing faster than the economy grows?

In: 0

Answer 1

Are you talking about the strength of the dollar for exchange purposes? Or how far a dollar can get you?

For exchange purposes, the value is determined by more than just GDP. You’ve got to consider inflation rates, public debt, interest rates, etc.