And by a reset on currency I mean a reset on the value of their currency. Take Iranian rial for example, their exchange rate is 371,992 to a single U.S. dollar. Could a rial ever have a 1:1 ratio without ever collapsing? I obv not a finance bro
In: Economics
If they retitle their rials so that every 1 new rial is equal to 371992 old rials, then technically yes. However, the actual purchasing power wouldn’t change. It’d just make the 1 new rial just a differently-named quantity for 371992 old rials.
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