eli5: If a 2% inflation is considered good and healthy, will this not at some point cause abnormally high money values or a currency crash?

Question

eli5: If a 2% inflation is considered good and healthy, will this not at some point cause abnormally high money values or a currency crash?

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Answer 1

One day, prices might be much higher… there was a time a loaf of bread was 30 cents, not $3.00 we see today. One day it’ll be $30.00. But will that seem odd if the increases occur slowly over time?

But countries can also re-value their currencies to drop 0’s off. I was in Mexico about 20 years ago when they did it… the New Peso took effect Jan 1, and Old Peso bills were accepted at 1/1000 face value for year or so until they could all be swapped out. Peso/Dollar exchange rate went from about 5000/1 to 5/1.