A few years ago I read a role-playing game supplement that described a cold war between kingdom Good and kingdom Bad. Both kingdoms used metal coins with silver as the most common followed by gold. Kingdom Bad planned to flood kingdom Good with gold coins, disrupting Good's economy in preparation for Bad's invasion. So far as I remember, Bad planned to use real gold coins and not counterfeit ones.
To me it seems that all Bad is doing is emptying its coffers to fill Good's, essentially paying for Good's defenses, weapons, and mercenaries.
However, I'm not sure if there's something I'm missing. Is this, in fact, really a reasonable plot? Can this style of economic warfare somehow destroy kingdom Good?