2 ms·
When it comes to currencies, supply has not such a powerful effect as people think. The value of a currency is determined more by the subjective ability of the
by coliveira 11y ago
When it comes to currencies, supply has not such a powerful effect as people think. The value of a currency is determined more by the subjective ability of the government to support the currency, not by the amount of it in circulation. If supply had such importance, large countries like Russia, China, and India would have a great advantage over the USA, because their currencies are currently not in wide circulation. In theory, the US could continue printing money until everybody in the world would be using USD (now, if this would or should happen is another thing).