aresyves OP t1_jegeiih wrote on March 31, 2023 at 8:42 PM

Reply to comment by ThatsTooOP in ELI5: why does the US need the dollar to be the only primary form of currency for oil? by aresyves

Thanks for this! I have another question based on what u/ejpierle said above. Now that we all agreed on marbles as the currency to trade for toys, what happens to toy trades if I create or aka print more marbles?

ThatsTooOP t1_jegf5x4 wrote on March 31, 2023 at 8:46 PM

If you print more marbles in the toy trading game, their value decreases. Similarly, if a country prints more currency for trading, its value decreases, leading to inflation. In the case of oil trading, if the US prints more dollars, the dollar's value may decrease, and other countries may find a different currency to use for oil trading or create their own.

Kelend t1_jegikzy wrote on March 31, 2023 at 9:10 PM

> what happens to toy trades if I create or aka print more marbles?

Nothing. You can just keep making/printing more marbles with no ill effects. Some people will claim this causes "inflation", but its not true.

BigPawh t1_jegwrwi wrote on March 31, 2023 at 10:52 PM

This take is very against the grain and I'd like to hear further explanation if you don't mind