The Magic Coin

Chapter 7

MONETARY CHAOS

It was daytime again, and they were on a busy street. People were pushing carts and carrying baskets like in the primitive village, but this time they were filled with the central bank’s paper notes instead of goods.

A woman parked a wheelbarrow full of notes outside a grocery store and went inside to do her shopping. A thief dumped the cash out and ran off with the wheelbarrow.

Lily saw price signs like she had seen in London, but the prices were getting higher and higher. Merchants were adding zeroes to each number every minute.

All the stores had long lines of people waiting to get in. As soon as people received any money, they rushed to spend it, since its value was dropping every second.

“WHAT CHAOS!” Lily exclaimed.

“You’re right,” Newton said. “The whole economy is in chaos because of the money printing. Consumers are rushing to buy whatever they can because their money is losing value faster than they can spend it.”

“How can they fix this mess?” Lily asked.

“It won’t be easy, but the first step is to stop the money printing. They’ll have to abandon the hyperinflated money and choose a new one, and they’ll have to place strict limits on how much of it can be created.”