Apparently, every time a currency falls victim to hyper inflation, sooner or later the country is gonna introduce a new currency to solve the problem.
But how does that help? If let’s say the us dollar lost 90% of it’s value every day, and you introduced a new currency, one of which is equal to 5 us dollars, wouldn’t that new currency, as it’s value is bound to the dollar, instantly lose 90% of it’s value every day as well?
In: 712
Replacing a hyper inflated currency with a new currency doesn’t fix anything. Hyperinflation is a symptom of a bunch of different problems that, unless taken care of beforehand, will just result in hyperinflation of the new currency.
Now, that’s not to say there’s no value in replacing the currency. It can be a sort of reset button to bring down the numbers on the currency to a sensible level.
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