5 ms·

That sounds right but how do you do this? In France there used to be the old Franc that was replaced by the new Franc at a rate of 1000:1 I think

• anfilt 6y ago
  That's pretty much what you do. You print and mint new versions that worth 1:X of the old currency is. Also you quit printing and minting the old currency. After long enough the old stuff is pretty much out of general circulation, but banks could still exchange for instance to the newer currency.
• anfilt 6y ago
  Also an interesting effect people don't consider about inflation is laws. For instance grand theft in the US is generally a 1000 dollars, but those laws don't account for inflation. Most these grand theft laws also were written in the 20's. So stealing same thing today could be felony, but would have only been a misdemeanor when the law was written. So re-basing also helps ensures certain statues and laws remain just. You could argue that law makers should go through old laws or account for inflation to start with, but sadly that is not the reality. Tons of laws get written with fixed monetary units.
  • fomine3 6y ago
    I found that Mexico has interesting law that considers inflation. The unit is called UMA. https://www.littler.com/publication-press/publication/mexico-increase-uma-value-announced-2020 https://www.littler.com/publication-press/publication/mexico...
• BrandoElFollito 6y ago
  The rate was 1:100. It was done in 1958 but many prople were counting in the old currency until at latest the franc changed to euro. Now we still have here and there monetary values given in francs (next to euros). I guess this must be a legal thing but come on, it is time to really move ahead and not keep backward compatibility forever here as well. An interesting denomination was in Poland where the money was denominated by 1:10000