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>"Inflation is a monetary phenomenon. It's not caused by a lack of trust." Trust in the value of currency is how money retains value. Modern money has no intri
by ZenoArrow 10y ago
>"Inflation is a monetary phenomenon. It's not caused by a lack of trust."
Trust in the value of currency is how money retains value. Modern money has no intrinsic value, it's not backed by anything, it's gains its value from consensus that it holds value.
- Lazare 10y agoI think you are confusing cause and effect. Trust is lost when the government destroys the value of the currency, by e.g., printing money. > Trust in the value of currency is how money retains value. No, not running the printing presses to pay your bills is how money retains value. :) And a history of retaining value is how a currency becomes trusted.