When the lowest amount of currency you could possibly buy anything with is so high, why don’t countries
“condense” the value of their currency? For example, [12 eggs in Indonesia costs 25,544.06 Rp (their local currency)](https://www.numbeo.com/cost-of-living/country_price_rankings?itemId=11) why don’t they condense their currency so it only costs 4-5 units of currency? Wouldn’t it make the math easier for people?
In: Economics
Other comments have touched on the problems involved with redenomination, so I’ll tackle the other point. “Wouldn’t it make the math easier for people?” Not really.
You see, people are already used to the state of the currency as they use it in their daily lives. Even if the numbers are tad big, most people just accept the big numbers and calculate accordingly. Some shops may drop the lower digits on the menu for the sake of brevity and style, but people usually converts the numbers into the original “big” numbers in their minds.
As far as my experience goes, this should more or less hold true if the country isn’t experiencing hyperinflation and the nominal exchange rate to the US dollar is less than around 10,000.
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