Re:20M historical artifacts destroyed in Brazil National Mus...
by tlb on Monday September 03, 2018 @12:33PM
(#17903469)
Israel cured its 400%+ hyperinflation in the mid-80s without ditching their currency, by imposing strict price controls. It took about 2 years to bring it down under 20%.
Re:20M historical artifacts destroyed in Brazil National Mus...
by dsq on Wednesday September 05, 2018 @11:16AM
(#17918721)
They ditched it twice: from lira to shekel and then from shekel to new shekel.
Re:20M historical artifacts destroyed in Brazil National Mus...
by tlb on Wednesday September 05, 2018 @05:57PM
(#17922245)
The change from pound to shekel was motivated by wanting a Hebrew name. This change was decided long before hyperinflation started, and didn't have much economic effect.
The change from shekel to new shekel was a 1000x redenomination, done after inflation was under control, reflecting the way people already talked about prices (in thousands).
This is different from the sense of 'ditch' in the previous conversation, which meant that the old currency became suddenly worthless.
Lol, all money is "fake" nowadays - the amount of physical currency in circulation is basically irrelevant.
Whether they printed banknotes right away or not, they effectively changed currency, which is a typical way to exit hyperinflation. Brazil "just" managed to execute the transition very well on a psychological level. Venezuela is trying it now, using crypto as their anchoring.
I honestly can't remember a country ever exiting hyperinflation by any other mean, they all end up ditching the original currency in one way or the other.