/biz/ - Business & Finance

[Anonymous No.16361061]

What would happen if a country decided to just ad zeros to all their currency? How would this affect the currecny? for example 1 dollar is now worth 10 etc. Please explain your reasoning

[Anonymous No.16361066]

>>16361061
That's called inflation and it already happens just slowly and not as blatant and instead of 1 dollars becoming 10 its more like 10 dollars becoming 1

[Anonymous No.16361072]

>>16361066
Is it the same though I am talking about everyone acting as though one dollar was worth 10. Surely this can be manipulated to make numbers look good.(economics wise)

[Anonymous No.16361087]

>>16361061
>>16361072

Your retarded, your talking about a 1000% increase in inflation overnight.

That's Zimbabwe levels of inflation.

No it can't be manipulationed because it makes your currency worthless on the international market.

[Anonymous No.16361106]

>>16361061
absolute displays of economic illiteracy demonstrates why we need hard money.
1/10 post. would recommend for reeducation camp.

[Anonymous No.16361205]

>>16361072
>Is it the same though I am talking about everyone acting as though one dollar was worth 10.
Why the fuck would anybody comply with that though? Please explain without a magic wand how the Treasury would accomplish this feat of mass psychology.

Redenomination only works where inflation has already occurred and they strip off zeros to make it easier.

[Anonymous No.16361238]

>>16361061
Government can steal everybodys savings in that currency. After that it only shits the whole economy using that currency.

It only "works" for a short time.

[Anonymous No.16361598]

>>16361061
>I make 10x as much money now
>go to store
>see prices have all increased 10-fold
>

[Anonymous No.16362011]

>>16361598
>I make 9x as much money now
fixed
the system is based on debt, don't forget that important variable