Asking this question from an American perspective. At an average of 2% inflation, an equivalent new car that costs $40,000 today would cost $2,000,000 in 200 years. Assuming matching(ish) wage growth (i.e. a household of two married professionals could still afford a $2M car), what are the government’s options? Let things ride? Print new $1,000 or $10,000 bills? Reissue a *NEW* USD that is worth 0.01% of the old one?
Still on the fence about if humanity will be around long enough to have this problem, but just curious about the options for my great-great-great-great-great-grandkids.
In: 4
Maybe. Currencies are often ‘reset’ so that the numbers aren’t as big. This is fairly common, 25 countries have done it in that last 20 years: https://en.wikipedia.org/wiki/Redenomination#List_of_currency_redenominations
The other option is that smaller denominations are removed. For example Japan had a 1 sen coin (1/100 of a yen) until 1945. Sen are no longer used and everything is priced in Yen. Canada got rid of the penny in 2013, but they are still legal tender. USA got rid of the half penny in 1857.
As cash and coins are used less, the actually numbers matter less.
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