Re:The War on Cash
by CompelTechnic on Wednesday February 17, 2016 @11:55AM
(#11119195)
Nominal value was the important term in the parent, i.e. a 100 dollar bill can't become a 99 dollar bill.
Sure, but nominal value is not what you use to buy things. The nominal value in my bank account won't just go down on its own either. But what I can do with it will.
Or is there a mechanism I don't know about that can lower nominal numbers in untouched bank accounts?
Re:The War on Cash
by dragonwriter on Wednesday February 17, 2016 @12:11PM
(#11119338)
> The nominal value in my bank account won't just go down on its own either.
It would with negative interest rates.
presumably to reduce the inflation of prices. 6 of one, right?
Re:The War on Cash
by atom-morgan on Wednesday February 17, 2016 @12:00PM
(#11119250)
The number on the paper != purchasing power
My parents lived through the hyperinflation in Yugoslavia in the 90's. The stories they tell are ... fun. Ideally you exchanged everything into deutsche marks as soon as you got it.
New denominations were being printed every few weeks because the currency was losing value etc.
Hell, even when we became Slovenia I remember that at first, the highest bill was 1,000. Just ten years later, the highest had to be 10,000 because the thousand one just wasn't cutting it anymore. It was too impractical for the prices.
For a more drastic example: in pre-war Germany it was more common to get mugged for bread than for cash. Wads of cash just weren't worth enough to bother.