I´m taking a free class with you in here. These "banana republics" through the printing money method are creating just paper, right, cause the circulation of those currencies are only local, or sometimes are dependants of another like USD
Well most have digital but yes it is a throwback to the days when paper was just printed. The Fed always controlled bank notes (still does) so that is central bank money. We do not use paper money much anymore which reduces their impact.
The "digital" dollar is from the commercial banks. Those that are ban repub do not have that line between central and commercial. Hence they just create the money out of thin air.
They tend not to be dependent upon the USD but get crushed by it. When the USD rises, the local currency falls. This means imports, priced in USD, get more expensive. It also takes more of the loc curr to pay back USD debts.
My doubt is that I think when they are gonna import for example, they can´t do bussiness with their currency, they need to commerce with the USD, that was my point, their local money has no international impact or value.
No it doesnt. Hell the people in Venezuela dont want VES, why would anyone else. That is why those companies that do biz with those in Venez demand USD as payment.
They tend to have the banana republic feel and they are the ones who create hyperinflation because their central bank can print money.
When money is created through loans, hard to expand the money supply without economic output.
I´m taking a free class with you in here. These "banana republics" through the printing money method are creating just paper, right, cause the circulation of those currencies are only local, or sometimes are dependants of another like USD
Well most have digital but yes it is a throwback to the days when paper was just printed. The Fed always controlled bank notes (still does) so that is central bank money. We do not use paper money much anymore which reduces their impact.
The "digital" dollar is from the commercial banks. Those that are ban repub do not have that line between central and commercial. Hence they just create the money out of thin air.
They tend not to be dependent upon the USD but get crushed by it. When the USD rises, the local currency falls. This means imports, priced in USD, get more expensive. It also takes more of the loc curr to pay back USD debts.
My doubt is that I think when they are gonna import for example, they can´t do bussiness with their currency, they need to commerce with the USD, that was my point, their local money has no international impact or value.
No it doesnt. Hell the people in Venezuela dont want VES, why would anyone else. That is why those companies that do biz with those in Venez demand USD as payment.