we all know the thing where it’s like oh in the 60s x amount of money is equivalent to x amount in today’s time, and how people could earn a dollar for an hourly wage because it was worth more back then. is it possible to have a “reset” on inflation where we go back to spending/earning a dollar, or will it keep permanently increasing to where in the future 10k is chump change?
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It’s possible to issue a new currency, but since inflation will continue afterwards, it’s usually not worth the trouble. It can make sense for a hyperinflated currency, though, where prices become difficult for the average person to understand. For example, Mexico experienced hyperinflation in the late 1970s to early 1990s. After stabilising the economy, they introduced a “new peso” that could be exchanged at a rate of 1000:1. Zimbabwe replaced their dollar several times in the 2000s, but without actually fixing the hyperinflation, so the usefulness didn’t stick (which is why they had to do it again), and they had to end the currency entirely in 2009. (The fourth (and final) Zimbabwean dollar was introduced at a value of 10 septillion first Zimbabwean dollars.)
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