How do you get money more valuable again after inflation?

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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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Anonymous 0 Comments

Yes. It’s called redenomination and happens actually somewhat commonly around the world. If you look at the list, some country is doing it every few years: https://en.wikipedia.org/wiki/Redenomination#List_of_currency_redenominations

Some countries don’t ever do it. Japan for example just got rid of their divisions on yen (sen, ren) and now everything just costs huge amounts.

If you get a Big Mac in Japan it’s 690 yen. One day a Big Mac will be $690, but by that time it’ll just seem normal and future kids won’t even know about cents.

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