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Xen9 | 11 months ago

If you can always move to smaller denominations, deflation would not be an issue:

If the price of an apple at t_0 is $2 and (using arbitrary symbol for the other currency) §2, and at t_1 $20=§2, then at t_1 citiziens in the nation using § as currency would pay §0.2 for an apple, et cetera.

The other currency would have to use scientific notation, for cash.

(if deflation wasn't the the cause of that crisis, this is not an answer).

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wasabi991011|11 months ago

The issue with deflation is that it discourages investment and so prevents growth in productivity. It's not about denominations.