Why Does an Economy Crash? Concept
Government
Politicians never let a crises go to waste
They would issue paper money called "Fish Reserve Notes"
Reserves
The banks reserve became low because the government was handing out more banks notes than what they have in the bank reserve.
The government want to fill the reserves with fake fish, thus will decrease the value of the real fish
Government will not raise taxes because of political fame reasons
Create copy cat fish to fool the citizens
Government invested some tax dollars to the island, but also created some jobs that are of no real value.
Fishflation "Inflation"
Fish production could not keep up with Fish Reserve Notes
The value of the fish dropped
Islanders interest paid on their savings diminished because of fishflation
People saved less because of fishflation
Government continue to print money to win elections
Exchange
Sinopian were willing to exchange their real fish for Usonia fish notes
Fishing and producing was outsourced to poorer countries so Usonian's can focus on other businesses
One island produce and the other consume
Collateral
If borrower couldn't pay the loan back the bank could take possession and resell to pay off the loan
Stimulus
A bail out program to get people to spend again
Printing more Fish Reserve Notes
Government overspending for bail outs