0gizmologist 5 years ago If a company is worth, say 1,000,000 dollars and sell 1,000 shares of stock, each share is worth $1,000. (1,000,000/1,000) If the company then issues another 1,000 shares of stock and the value of the company stays the same, then each share is only worth $500 (1,000,000/2000).The exact same thing happens when a country "creates" more money. The total value is the same, but each dollar is worth less because there are more dollars.I am not an economist, but even I can figure this out. The only way to create more money is to create more value (i.e. mine more gold or turn a raw material into a more valuable product).