Why We Trust Money

Prices rise 10% in a year. You kept $100 in a drawer. What happened to your money?

• Nothing: you still have $100
• The note still says $100, but it buys less than it did
• It grew to $110

A currency loses value so fast that shops switch to pricing in US dollars. In this course's three-part framework, what usually fails first?

• Acceptance
• Stability
• Nothing fails, shops just prefer dollars