I understand the basic concept of not just printing money because it devalues all other money if it isn’t backed up by something like more work done by a country. But what if country A owes country B $100 million because country B has produced something worth $100 million for country A (e.g. produced cars). If country A just secretly created $100 million and sent it to country B how would country B know that it was just created without any value. Wouldn’t country B get their $100 million without inflation as they have produced the economic value for it. This is assuming that the 2 economies aren’t really linked.
1. You can’t keep things secret in an open market. Country B will start spending the money country A sent them, and very soon, people will realise there’s more money in the market and country A’s currency will devalue
2. Money’s value is in the underlying trust in them. If people realise country A repays debt by printing money (which devalues country A’s currency), other countries will lose their trust in them and stop lending them money or trading in country A’s currency.