this post was submitted on 04 Dec 2023
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[–] XTornado@lemmy.ml 2 points 2 years ago* (last edited 2 years ago) (2 children)

including inflation so big, it actually goes into changing money

I didn't quite get what are your talking about here, could you explain?

[–] Kraivo@lemmy.world 2 points 2 years ago (1 children)

In russia they had to turn 100 rubles into 1 rouble

[–] HerbalGamer@sh.itjust.works 1 points 2 years ago

100 roubles make 1 trouble?

[–] dejected_warp_core@lemmy.world 1 points 2 years ago

Re-basing currency. Basically the mint makes "old money" worthless overnight, and "new money" is printed that has value that is more realistic. You get a window to buy new money with old money, and then that's it. I have no idea how that happens with digital accounting, but would obviously need to be a thing too. Point being: it's possible for inflation to be so horribly mismanaged that you have to declare a do-over to fix it.

Zimbabwe is the current poster child for this, where trillion-dollar notes were exchanged for single-dollar amounts on their third attempt of re-basing. But other countries like Iceland have done this in the not too distant past.

I'll add that with the US dollar being a de-facto reserve currency just about everywhere, the %1 is in the same boat with the rest of us. So I wouldn't expect things to get that dire. It might get re-based eventually, but probably more of a "let's move the decimal point over because this looks stupid" kind of a thing.