eli5 De Dollarization
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Imagine a bunch of kids trade their lunches with each other using a common currency: candy. A kid can sell their ham sandwich for 5 pieces of candy, a kid can buy a fruit roll-up for 8 pieces of candy, etc.
The kids’ parents don’t like them using candy as a currency, so they tell them to use pudding packs instead. Now a fruit roll-up costs 3 pudding packs, a PB&J sandwich costs a butterscotch pudding pack, etc.
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