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The Bolivars being introduced into circulation over a period exceed the number of Bolivars needed to settle debts and taxes over a period, and the excess of Bol
by notahacker 6y ago
The Bolivars being introduced into circulation over a period exceed the number of Bolivars needed to settle debts and taxes over a period, and the excess of Bolivars in the system resulted in people being able to obtain Bolivars they needed to settle these obligations by doing less work or supplying fewer goods.
Competently run central banks, unlike incompetently run central banks or crypto mining algorithms, intervene to reduce the money in circulation when its purchasing power falls faster than they're comfortable with.
- jerrymiller 6y agoAre you saying this has helped people in Venezuela?
- notahacker 6y agoNot unless they had significant debts or tax bills denominated in increasingly worthless Bolivar, or the newly printed Bolivar were being funnelled to them, no. (Obviously debtors did not continue to be helped either, as businesses and lenders adjusted repayment terms accordingly, including a strong preference for receiving USD in untaxed offshore accounts, or just gave up altogether after incompetent monetary policy had ruined them.)