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I am sorry if i am posting my question in wrong place but, i just want to know what happens to the economy of a country if someone burns or destroy money? I know it increases every unit price of money but i want an elaborated explanations.

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Depending on the country, nothing. For example, the US has about $1.3 trillion dollars of cash in circulation. Which means that if you were to burn a million dollars of it, that would be 0.000077% of the circulating cash. But cash is a small portion of the actual money in the US. Only about 8% of all money is in cash, the rest is in other forms of value, which means that you'd only be destroying 0.0000062% of the US's money if you burned a full $1,000,000.

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    Note that the government itself destroys cash on a regular basis, retiring worn or damaged bills and printing more. If you actually managed to destroy enough to be significant, I'd expect the government would simply run the presses for another hour or two. Put this together with @DavidRice's comments, and I think the answer is "nothing interesting happens."
    – keshlam
    Sep 2, 2014 at 21:43

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