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What Are Causes Of Devaluation Of Money?

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    Pretty much printing too much of it.  Think of it as poker chips.  If you put all the goods provided in your "mini economy" into one pile and the poker chips in another then divide things up and determine how many poker chips it takes to buy each item (goods).  If you add more poker chips but keep the amount of goods the same and re-do everything now it takes more chips per good.  The chips themselves are worth less each or "devalued".  In its simplest form print twice as much money but leave the amount of all goods and services the same and the money is only worth half what it was.  Pretty basic but that's it in a nutshell.
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    Irvirv  

    answered 11 months ago

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