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Answer:
Relative prices would become more variable.
Menu and shoeleather costs would rise.
Hyperinflation could undermine the public's confidence in the economy.
Explanation:
The first reason that would make this to be effective is the hyperinflation that it will create and this is very bad for the economy as too much money will be chasing fewer goods.
Examples of what the effect of a paper money would be include: extreme hyperinflation can reduce the confidence of the public in the economy and economic policy; variability of the relative price between the countries will rise; shoeleather and menu costs will rise; it will result in an arbitrary change in tax liability; the level of uncertainty in the economy will rise and there will be an arbitrary wealth redistribution.
it should be noted this action would not deny the government seigniorage revenue from the inflation that would follow as the public will get the money dropped by the foreign airplanes.
World War II was a war that is commonly known in history. During World War II, both Germany and England had plans for a paper weapon. This may might this have been an effective weapon because;
Hyperinflation could undermine the public's confidence in the economy.
A paper weapon might have been effective for all the reasons that hyperinflation is bad. Note that a great increase in the money supply will also increase menu cost and thus making relative prices more variable;
When there is hyperinflation found to be very extreme, it can bring down the people's confidence in the economy of the country and economic policy.
Hyperinflation often takes place in times of war and economic turmoil in the production economy and this can lead to a surge in prices for basic goods
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