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Well, its certainly a common belief that the requirement to pay taxes in the national currency gives a national currency its value, but the hyperinflationary ev
by sbenitoj 9y ago
Well, its certainly a common belief that the requirement to pay taxes in the national currency gives a national currency its value, but the hyperinflationary events in Zimbabwe and the Weimar Republic (and the subsequent worthlessness of those national currencies) demonstrate that this requirement is insufficient to give currencies their value.
In fact, the only thing that gives currencies their value is people's belief that they have value (much like gold before national currencies).
I'd also like to add that "countries" dont have goals, countries are made up of people, and only people have goals -- and all people are self-interested. The people in control of monetary policy are just as self-interested as the miners are, instead of receiving profit directly like the miners they inflate currencies to the benefit of major banks in their countries (and subsequently get highly paid jobs at those banks or elsewhere in the finance industry).