“Why can’t countries just print more money?”
It’s a question that many have asked me. Even in school, students in introductory economics classes seized the opportunity to finally get an answer from their professors.
The response can be both complicated and simple; it depends on who you ask. For me, a story always helps.
The first World War was quite costly for the Germans. They had borrowed huge sums of money, banking that a victory would help them repay their debts. They lost the war, and to add insult to injury, they were fined $270 billion (in today’s value) for causing the war in the first place.
The German economy was a wreck. And to try and finance their debts and pay wages, the government decided to print money. However, the more mark notes (Germany’s currency) they threw into the system, the more worthless the currency became. Individuals now had