Potter Cash: 1,000 Galleons in Time and Space

[Kenneth Clark]

No: HPFGUIDX 162032

--- In HPforGrownups at yahoogroups.com, "a_svirn" <a_svirn at ...> wrote:
>
> I am kind of butting into this thread, so sorry if it was discussed
> already, but do we have any idea how does Gringotts work at all? I
> mean, in real life money always works to make more money, but how
does
> it work in the WW? We don't hear anything about loans, mortgages,
> venture capitalists and so on. The twins called Harry's
contribution "a
> loan", but in fact, it wasn't, and applying for a Gringotts's loan
> didn't seem to be an option. So how do the Goblins manage to stay
> afloat? To quote Antonio "is their gold and silver ewes and rams"?
>

Ken says:

Of course there is much bigger question here.  What exactly is the
economy of the magical world?  Money doesn't breed, its a
representation of value.  Once the gold in anyone's vaults is spent
from where is it replaced?  Where does the cash for Mr Weasley's wages
come from?  Fom what industries, investments or whatever does Lucius
Malfoy's wealth derive?

Kenneth Clark