3 ms·
Honest dumb question: If I had a Z$100 trillion note today and held it for 10 years after which time Zimbabwe made a modest comeback (hopefully) what would dete
by snorkel 18y ago
Honest dumb question: If I had a Z$100 trillion note today and held it for 10 years after which time Zimbabwe made a modest comeback (hopefully) what would determine the value of that note then? Perhaps it'd be worth $10000? Or does the new government of the recovering nation just scrap all of the old currency and tell any note holders to cash in the old notes by such a date or they'll be worth nothing? What happens to hyper-inflated currencies in recovery mode?
- gravitycop 18y agowhat would determine the value of that note then? The amount of specie in circulation, divided by the assets that back that specie. Perhaps it'd be worth $10000? That would represent massive deflation. Normally, governments print enough specie to at least keep up with the asset growth that backs it. If not, they might require massive taxation (recovery of existing specie) to cover their costs.
- eru 18y agoThey get replaced by new currency. See Rentenmark on Wikipedia.