Post
Topic
Board Economics
Re: Why not just print dollars?
by
SebastianJu
on 14/03/2016, 17:13:32 UTC
without Backup of Gold reserve government print Dollar then Currency value goes down and inflation increase.

Even with the back up of gold reserves, the currency will still devalue as too many notes are printed. You cannot exchange them for gold.

Huh? Gold reserve means that they only could print as much money as the gold they had in reserves was worth. It was backed by the gold. Only when the dropped that connection they could start to print like they wished.