How does a new currency stop inflation?

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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?

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Anonymous 0 Comments

It doesn’t. Argentina did it 4 times since 1970 and continues with 100% inflation per year

Making new currency only helps writing less zeros, at least for a few years

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