Okay so as far as I’m understanding it, we have (and also want to have for economical reasons, the amount can be discussed but in general we want that) inflation. Therefore money becomes always less and less valuable, the ice cream will always cost more and more. Can you reverse that process without going into recession/deflation? So will there ever be a point again, at which an ice cream will cost 50ct again (random example)? Can that be reversed by introducing a new currency?
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> Can you reverse that process without going into recession/deflation?
No, the opposite of inflation is deflation so if it reversed then it would by definition be deflation. It doesn’t necessarily need to result in recession but it would be very likely.
> Can that be reversed by introducing a new currency?
Currencies can go through something called “redenomination” where the units of a currency are remapped to reduce their digits. For example the US dollar could change such that $20 equals $1. This would mean $1 of the old bills would equal 5 cents of the new money.
New bills would need to be printed and there would be both a specific changeover date where everyone’s bank account would shift to the new units, and a longer period where old physical money could be exchanged for the newly minted versions. This process is very similar in essence to introducing a new currency, except that the name is retained such that after the shift the currency is still “US dollars”.
This of course would just be cosmetic. An old $20 bill and a new $1 bill would be worth exactly the same amount, and you could express the same amount of wealth using either units. Doing this for the nostalgia of seeing 50 cent ice cream again isn’t likely a worthwhile motivation.
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