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No, it's not necessarily true for a currency backed by a state, since the state can force you to pay taxes in that currency, thus creating demand for the curren
by kpommerenke 12y ago
No, it's not necessarily true for a currency backed by a state, since the state can force you to pay taxes in that currency, thus creating demand for the currency and underpinning its value.
- chias 12y agoTell that to Zimbabwe, who still doesn't have a national currency because of exactly this: http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe