how deflation creates hyperinflation, page-8

  1. 5,231 Posts.
    Im not sure abender, but the money, at least in Zimbabwe has a used by date on it once it gets to those extremes. There is a classic picture of a German woman loading marks into a fire place and I think that money is actually out of date. So, if the govt devises a plan to get out of hyperinflation like pegging their currency to gold the value of that money will instantly come down.
    So you might hold trillions of dollars but you either have to spend it or bank it before the used by date or it is only good for the fireplace or other suitable applications.
    If the money is banked the value will come down to whatever the level the govt decrees it to be at that time.
 
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