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by RobertoG
3047 days ago
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Well, following your theory, a dollar in the desert have infinite value ;-) If your only export is farm-originated goods (as it's basically the case of Zimbabwe), that means that you have to import everything else. That means that you need foreign currency for getting everything that it's not farm-originated goods. If you stop producing farm-originated goods, the value of your money will drop respect the other currencies and you will need more and more or your currency to buy imports. But even in a closed economy, less production and the same quantity of money, means, obviously, more expensive prices. How could be otherwise? After all, you agree that the same production and more money means more expensive prices. |
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