Like what drops them from just adding some extra 00 as everything is digital, especially in third World countries?
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No real upside for smaller banks to do it, because it becomes very obvious for governments to figure out what they’re doing and shut them down for currency manipulation, at which point they end up with no money and in prison (or worse).
Central banks absolutely can do it, but it leads to rampant inflation. Glossing over a lot of the finer points; if you multiply the total amount of dollars in circulation by a factor of 100 overnight, you don’t have 100 times more value. Instead, the total value is the same, and now each of your individual dollars is worth 100 times less.
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