Can they ever be reset? Or will one day a regular chocolate bar cost for example €50? House that costs €200k cost €1,000,000? Will the likes of the euro or US dollar one day be the same as currencies such as the YEN where “1” of them is essentially worthless?
In: Economics
Ideally no. Deflation is pretty bad for an economy. Currencies might eventually be redenominated which is basically where a new currency is issued to replace the existing one at a set exchange rate.
For example the dollar might be replaced with the super dollar, and 1 super dollar equals 100 dollars. Banks etc would accept both for a number of years but only pay out in the new currency, accounts etc would switch to being denoted in the new currency.
If inflation is kept at 2% you would on average need to drop a zero about once ever 120 years.
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