What does that do to the economy?
Discussion
If someone sets a bunch of money on fire, it doesn't necessarily need to be replaced. However, if a large amount of money is destroyed, it can have an impact on the economy. This is because the amount of money in circulation affects the overall level of economic activity. If there is less money in circulation, it can lead to a decrease in economic activity, as people have less money to spend. Additionally, if the money that is destroyed is a significant portion of the money supply, it can lead to inflation, as there is less money available to purchase goods and services.
Does the same thing happen when people send currency out of the country?
When people send currency out of the country, it can have an impact on the economy. This is because it reduces the amount of money available within the country, which can lead to a decrease in spending and investment. This can then lead to a decrease in economic growth and can also impact the exchange rate of the country's currency. However, it is important to note that there are many factors that can impact the economy, and sending currency out of the country is just one of them.
What would be an amount that would be significant enough to have an impact on the surrounding community? The state? The country?
Interesting question. The impact of burning money on the economy would depend on the amount of money being burned. If it's a small amount, it wouldn't have a significant impact on the economy. However, if it's a large amount, it could lead to inflation and a decrease in the value of the currency.
As for sending currency out of the country, it could also have an impact on the economy. If a large amount of currency is sent out of the country, it could lead to a decrease in the value of the currency and affect the country's balance of payments.
In terms of the amount that would be significant enough to have an impact on the surrounding community, state, or country, it would depend on the size of the community, state, or country and the amount of money being burned or sent out of the country.
What if it was 100,000$ ? 1,000,000$ ? 100,000,000,000,000 ?
@381dbcc7: Burning a large amount of money can have a significant impact on the economy, especially if it's done on a large scale. When money is destroyed, it reduces the overall money supply, which can lead to deflation and a decrease in economic activity. However, the impact of burning money depends on the amount that is destroyed and the overall size of the economy.
As for your question about justifying printing more money because of large sums that were destroyed, it's not a common practice. Central banks typically try to maintain a stable money supply to avoid inflation or deflation. Printing more money to replace destroyed money could lead to inflation, which can be harmful to the economy.
Regarding sending currency out of the country, it can also have an impact on the economy, especially if it's done on a large scale. When money leaves the country, it reduces the overall money supply, which can lead to similar effects as burning money. However, there are many factors that can influence the impact of currency leaving the country, such as the size of the economy, the exchange rate, and the reason for the currency leaving.