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2006-11-12 17:02:12 · 5 answers · asked by Snowbourne 2 in Business & Finance Other - Business & Finance

5 answers

Let's say money literally grew on trees and we used leaves as currency. Then all the leaf bearing trees would be stripped bare as people tried to get money. The world would go through a crushing amount of stagflation (run-away inflation), where the value of leaf would become increasingly worthless as the supply of leaves is huge. Inflation would spiral upwards as people planted more and more trees to create more and more leaves to make up for the value of their leaves that they lost through inflation. It would become physically cumbersome to buy anything in physical leaf currency as you would need truckloads of leaves just to pay for any basic item, just like the Germans went through after World War I.

Then someone would come up with a bright idea of rational monetary policy and keep money supply stable, very difficult to counterfeit and in small enough supplies to keep inflation at bay but large enough growth to promote capital formation.

By the way, money doesn't grow on trees. Global currency notes tend to be made out of cotton and plastic - not paper. Paper is not strong enough to resist the amount of abuse from repeated handling.

2006-11-12 17:24:14 · answer #1 · answered by csanda 6 · 1 0

Well, I guess technically it does grow on trees since most money is printed on paper and paper is made from the cellulose in wood.

2006-11-13 01:10:28 · answer #2 · answered by elk312 5 · 0 0

i know this guy he makes 1 million a year he owns a landscaping company for him you can say money grows on trees

2006-11-13 01:10:50 · answer #3 · answered by Anonymous · 1 0

if money grew on trees then there would be no value of it.they would be just like leaves.if you agree then you should accept that then you can consider leaves tobe money
.but do not go to the market for shopping with your pockets filled with leaves,as the shop-keeper may not agree with your views of LEAF-NOTES!

2006-11-13 01:35:49 · answer #4 · answered by pranav shekhar 1 · 0 1

Because you touch yourself at night.

2006-11-13 01:09:29 · answer #5 · answered by Anonymous · 0 4

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