Re:Venezuela Follows India’s Example and Voids Half of Its Cash
by ZenoArrow on Saturday December 17, 2016 @05:08PM
(#13202959)
>"Inflation is a monetary phenomenon. It's not caused by a lack of trust."
Trust in the value of currency is how money retains value. Modern money has no intrinsic value, it's not backed by anything, it's gains its value from consensus that it holds value.
Re:Venezuela Follows India’s Example and Voids Half of Its Cash
by Lazare on Saturday December 17, 2016 @11:50PM
(#13204388)
I think you are confusing cause and effect. Trust is lost when the government destroys the value of the currency, by e.g., printing money.
> Trust in the value of currency is how money retains value.
No, not running the printing presses to pay your bills is how money retains value. :) And a history of retaining value is how a currency becomes trusted.
Inflation is a monetary phenomenon. It's not caused by a lack of trust.
> If you can cut down the influence of the black market you can restore goods being bought and sold using the local currency, which will slow down inflation.
That's not how inflation works.