2 ms·
In fairness, none of them printed their own money really. They all relied on something else, and then printed promissory notes for that "something else". So the
by bilbo0s 7y ago
In fairness, none of them printed their own money really. They all relied on something else, and then printed promissory notes for that "something else". So the more promissory notes they printed, the less "something else" each promissory note was worth.
One of the most confusing things to me in some of my econ classes was the realization that there is no "something else" backing my nation's currency. The US Dollar. As I understood it, it's just backed by the word of the US? (Could be wrong, it's been a while.) So I always wondered, what keeps them in check? I've never really figured that out. Someday maybe I'll go back and sit in on some more advanced classes?
- effie 7y agoIt certainly isn't merely the word of the US, it is its status and behaviour. The big factor is that US is a very big and stable economy and military wise. People know that, so they think large and long-term fall of dollar value is quite unlikely to happen.