I've occasionally wondered how that works. For instance, Harry's bank account is quite literal. If it accrues interest, that would seem to imply the goblins open it and physically throw in some more gold at regular intervals... and there it sits until such time as Harry goes there and withdraws some.
This situation, if multiplied across hundreds of thousands of accounts, could easily lead to the overproduction of currency and the rapid deflation of its value, leading eventually to the utter collapse of the wizarding economy.
I read a fanfic called "It's Just Business" where Harry realized that galleons were made of actual gold and transferred all his money to gold bullion, which he then sold in the Muggle world. Then he converted his Muggle money back to Galleons... Rinse, repeat, and eventually the Wizarding World's economy collapsed.
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branchandroot
(no subject)
Date: 2007-05-19 04:19 pm (UTC)This situation, if multiplied across hundreds of thousands of accounts, could easily lead to the overproduction of currency and the rapid deflation of its value, leading eventually to the utter collapse of the wizarding economy.
(no subject)
Date: 2007-05-19 06:16 pm (UTC)(no subject)
Date: 2007-05-21 02:11 pm (UTC)(no subject)
Date: 2007-05-21 11:04 pm (UTC)(no subject)
YAY!