Is there a set limit on making cash money? If so, how to they control it?
I’ve been wondering for a while on how the government keeps track of how much cash money they make. Since people (everyone.) lose their money from time to time, how do they keep the useable cash balanced? Also, if our country needs more money, why not MAKE more?
The money used to be backed by Gold–it was the gold standard. That was a huge politacal debate at the turn of the century should it be gold or silver. William Jennings Bryant was the presidental candidate backing the silver standard…he lost so you can guess what happend.
But now there is nothing backing the money in that sense, it is dictated by the market value not any actual standard.
The government strictly controls how much money is out on the market, it will retire money and issue a strict number of bills.
If you put too much paper money on the market you will devalue it, that was a giant problem for Russia in the 90s.
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