Why the goverment of a country wouldn’t just make more money to make the country rich?
In: Economics
I think colonial Spain and pre-ww2 Germany kinda illustrates why this doesn’t work. If you have too much money something called inflation happens. Basically this means the value of an individual unit goes down, like the dollar or yen.
Spain got too much silver in their economy from South America and ranked their economy. Germany printed too much money to pay war reparations from WW1. This resulted in in it costing absurdly high prices for things like bread. There are famous pictures of Germans with literal wheelbarrow’s full of paper money on the way to go buy food.
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