Other countries and banks use their money too. If a bank suddenly has its hands of a billion Imaginationland dollars it might exchange those dollars in to another currency it wants more by trading with a corporation that intends to use those Imaginationland dollars to make payments on a contract they have with a company in Imaginationland that needs to be paid out in Imaginationland dollars.
Or the bank might use those dollars to buy shares in Imaginationland corporations listed on the Imaginationland Stock Exchange, which would result in those billion dollars going in to the accounts of the Imaginationland corporation that issues those stocks for sale and then they'll use it to pay salaries, pay out vendors, etc
It'll always find its way in to circulation somewhere.
oefd t1_j2ax7om wrote
Reply to comment by Derikoopa in eli5: Why couldn't a country in debt mint a coin of immense value and use it to pay off the debt? by Derikoopa
Other countries and banks use their money too. If a bank suddenly has its hands of a billion Imaginationland dollars it might exchange those dollars in to another currency it wants more by trading with a corporation that intends to use those Imaginationland dollars to make payments on a contract they have with a company in Imaginationland that needs to be paid out in Imaginationland dollars.
Or the bank might use those dollars to buy shares in Imaginationland corporations listed on the Imaginationland Stock Exchange, which would result in those billion dollars going in to the accounts of the Imaginationland corporation that issues those stocks for sale and then they'll use it to pay salaries, pay out vendors, etc
It'll always find its way in to circulation somewhere.