Re:How Fake Money Saved Brazil (2010)
by SubiculumCode on Saturday September 03, 2016 @06:35PM
(#12421585)
To a certain extent I disagree. As long as you have to pay your taxes in the sovereign's currency, and failure to pay those taxes has real consequences, there will be demand for that currency...
Re:How Fake Money Saved Brazil (2010)
by redblacktree on Saturday September 03, 2016 @10:03PM
(#12422284)
In what way do you disagree?
The entire economic system is based upon trust. Trust that you can pay back a debt, you can take out a loan, you will get paid and the money will hold its value, the government will honor and stand behind it currency. This trust is lost when a government defaults on its debt, which was the case in Brazil and much of South America.
The real created an illusion of trust by listing prices in a phantom currency.