2007-01-26 23:54:13 · 5 answers · asked by Charles R 1 in Arts & Humanities ➔ History
Germany, 1930's. If you make more money it becomes worth less. Bank notes are only promises to pay froma central bank. Originally bassed on gold reserves now based on....don't know.
There's no reason a country can't produce money and support it'self internally. several communist countries did it fairly well for years with out total collapse but internal markets are self limiting whereas international trade if successful will make you wealthier
2007-01-27 00:08:43 · answer #1 · answered by Rick 3 · 1⤊ 0⤋
Because like all things money is affected by supply and demand. If you increase the amount of money you decrease its value. Take Germany during the 20's. To pay off their depts they just kept printing money. The inflation got way out of hand, what you made at work one day whould be compleatly devalued and worthless the next.
2007-01-27 08:11:46 · answer #2 · answered by the_mad_yovo 2 · 0⤊ 0⤋
some of these third world countries are not able to make their own money and really struggle. Their only option is to borrow.
2007-01-27 08:55:24 · answer #3 · answered by mystery8 1 · 0⤊ 0⤋
Making your own money would be worthless,inflation would spiral out of control it happened in Germany in the thirties a loaf of bread would cost a wheel barrow full of money.
2007-01-27 08:00:06 · answer #4 · answered by taxed till i die,and then some. 7 · 0⤊ 0⤋
If you do that, each unit of currency would be worth less so you'd be no better off.
2007-01-27 07:58:26 · answer #5 · answered by Well, said Alberto 6 · 0⤊ 0⤋