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Why do some countries have such large quantity banknotes? I know America gets a lot of things wrong, but it makes a lot of inherent sense for dollars to be 1, 5, 10, 20, 50, 100. Etcetera. When it costs 25,000 of your currency to buy an old video game system, I have to wonder if it was designed that way or of it was just some bad inflation at some point that ended up devaluing the currency so that more was required.
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>>1462664
https://en.wikipedia.org/wiki/Inflation
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>>1462665
America has inflation, too. Instead of making larger bills, we just make the old stuff cost more. Surely there were other solutions than printing larger denominations.
1,000,000 pesos is just about 50,000 USD. That seems pretty stupid.
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>>1462665
That's not the reason why certain currencies have little "value". Japan is the third largest economy in the world and yet the yen is really "weak".
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>>1462669
Japan had an enormous bout of inflation when it lost the war.
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>>1462737
And they still kept devaluing because a strong yen would fare bad for japanese exports.
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>>1462666
There's inflation like America has and there's "oops we almost entirely devalued our currency in a short time".
>Surely there were other solutions than printing larger denominations.
You can invent a new currency unit that's something like 100 of the old one, if it matters enough to go through all that.
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post the zimbabwe one
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>>1462759
>You can invent a new currency unit that's something like 100 of the old one, if it matters enough to go through all that.
Mexico did this at one point:
https://en.wikipedia.org/wiki/Mexican_peso#Nuevo_peso
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>>1464517
Venezuela has done it too.
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>>1464540
1:1000 seems to be common.
So about 200 years between US$ revaluations assuming we maintain a policy of steady 3% inflation.
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cash money
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