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
Doing this before you stop the root cause of the problem (inflation) just makes it so you run into this problem again soon enough. And since it’s a costly endeavor to go through, countries don’t want to do this repeatedly.
Turkey did this in recent memory by dropping 1000000 to 1, and yet the lira continued to sink. In a decade or so it wouldn’t be particularly surprising to hear for calls to another go at it.
Latest Answers