Home Forums Principles of Economics Alternatives for a country to avoid debasing its currency during times of war

  • Alternatives for a country to avoid debasing its currency during times of war

  • Flavio

    Member
    August 11, 2021 at 12:33

    Hi,

    I’m still learning and not able to find the answer to this just yet.

    What are the alternatives for a country to not debase its currency during times of crisis, war?

    Like, when the enemy’s tanks are rolling in? I’m thinking that there’s some game theory involved, that during war, every country ends up having to resort to currency debasement (i.e. forcibly extracting money from its population). Even though it’s worse for the collective, no country can afford not to do it.

    One hypothesis that I can think of is that said country with a hard currency (i.e. a country under the bitcoin standard) wouldn’t be in war in the first place.

    Thanks in advance for your thoughts!

Viewing 1 of 1 replies

Original Post
0 of 0 posts June 2018
Now