How did Romania manage to save its currency in the 2000s by just dropping the last couple of zeros? Wouldn’t other countries be able to do the same?
In: 138
>How did Romania manage to save its currency in the 2000s by just dropping the last couple of zeros?
The premise of the question is incorrect. It was changes in the Romanian economy that stabilized the currency. The removal of four digit in the currency was done to have more manageable numbers, it do not fundamentally change the value of the currency.
If you look at Romanian inflation rates [https://tradingeconomics.com/romania/inflation-cpi](https://tradingeconomics.com/romania/inflation-cpi) they are really high in the early and late 1990s. From 200 you find the dropping to around 2015 where they in fact are negative. The graph do not show any difference at all in 2005 when the new currency was introduced
Latest Answers