Reference no: EM133534844

Discussion: Reply to student. Without money, would everything be more expensive? Right off the bat, many things would be more expensive in that trade would now have to be made either through barter or exchanging of labor hours. That being said, an argument could be made that you would now have a more resilient economy, albeit with fewer material goods. No longer would you be exchanging paper or plastic money for material goods, but rather material goods for material goods (Beattie, 2022). In the case of hyperinflation, which has a host of causes, but is mostly simply understood as too much paper money being printed, driving down the value of a country's currency. When this happens, individuals in those countries will often begin to trade in other currencies because there is a scarcity of whatever foreign money they are using. This scarcity means that the intrinsic value of the medium is higher because of its rarity. US Dollars are most often used because it is the global reserve currency, for now at least.