4 ms·
Does anyone know what happens after these hyperinflationary periods with the notes? Are they made illegal tender? For example I was curious about if you held o
by richrichardsson 4y ago
Does anyone know what happens after these hyperinflationary periods with the notes?
Are they made illegal tender?
For example I was curious about if you held onto a 10 million Ruble note when it was "worthless" until the point the Ruble recovered, is that note still legal tender and has your "investment" appreciated?
- rory 4y agoIn the case of Germany, they invented a new currency worth a lot more and allowed exchange at a gov't-determined rate (they actually did this a few times).
- vikingerik 4y agoBasically, yes, old notes become nonlegal tender. Hyperinflation is resolved by the government issuing a new currency (sometimes with the same name as the old one), and allowing conversion to the new one, at whatever extreme ratio like 10e6 to 1 or whatever. The conversion lasts for a limited time and then any notes existing after that are no longer accepted as fiat currency.