For example at 3% inflation, 19 dollars 100 years from now will be worth about 1 dollar today. So spending a hundred bucks on a cup of coffee would be possible if inflation just keep happening. Will the government ever reinvent currency to “reset” the clock or will we just have to begin printing 1000 dollar bills?
In: Economics
In a word, yes, they can.
Though they’ll probably stop minting coins in cents.
This has already happened to several now stable currencies.
For example the Japanese Yen is a fairly stable currency for a fairly stable economy.
A can of Coca Cola cost around 120 yen.
They have 100 yen coins, etc.
Before their economy tanked due to WW2, the Japanese had the Sen, which was equivalent to 1 cent, with 1 yen being more like a dollar.
Barring any significant catastrophes, it may be that they eventually just drop the lower denominations and round up transactions to the lowest amount people can be bothered with.
Quite a significant number of people have argued this should already have been done with the US penny.
This was already done with the US half-penny.
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