Since money basically represents the confidence in the capacity of a countries economy to provide you with a service or good would the value of say the US dollar fall if everyone quit working overnight?
In: Economics
Confidence in a country would be shown by the value of their government ’bonds’ (you lend money to the government and they pay you interest on the loan you gave them). As with most investments, the higher the return, the greater the risk (of not getting your money back).
You also have intergovernmental loans which, as the name suggests, are just loans either from the World Bank or between governments.
If you break the analogy down to a situation between friends, if your friend packs in work on a whim, are you likely to give them money? No! They’re not to be trusted to repay it.
If all the US downed tools in your fantastical scenario, the rest of the world will look askance, decide it was not to be trusted and everyone would start pegging to the Euro instead.
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