Re:Venezuela's Inflation to Reach 1M Percent
by realusername on Tuesday July 24, 2018 @07:08AM
(#17599882)
> In this case, I think a new money supply is needed or no one will want to sell anything, as they’d be stuck with a much more depreciatimg asset.
Yes indeed, that's exactly how they solved this issue in Brazil: https://www.npr.org/sections/money/2010/10/04/130329523/how-...
Re:Venezuela's Inflation to Reach 1M Percent
by isolli on Tuesday July 24, 2018 @07:42AM
(#17600076)
Similar approaches were used during the French revolution [0], after the American revolution [1], and by the Nazis before the war [2].
[0] https://en.wikipedia.org/wiki/Assignat [1] https://en.wikipedia.org/wiki/Early_American_currency#Contin... [2] https://en.wikipedia.org/wiki/Reichsmark
Re:Venezuela's Inflation to Reach 1M Percent
by RugnirViking on Tuesday July 24, 2018 @07:28AM
(#17599994)
People sometimes barter in the short term, but usually end up using another currency. In modern times, it's often dollars.
In this case, I think a new money supply is needed or no one will want to sell anything, as they’d be stuck with a much more depreciatimg asset.
I have a simple definition of money that I haven’t seen anywhere else:
Money is the most liquid asset in an economy.
What would that be in Venezuela at the moment? Rice?