Economics: Removing Zeros from Currency Causes Inflation?
A while back I was having a conversation with a friend of mine who has much more knowledge then me in Economics. This was a while ago so I might have things confused. I was telling him about South Korea and how their currency the Won is in a position where 1000 Won is worth slightly more than $1USD. I stated that it might be easier if they just removed a zero(or more) because no one ever uses the last holding. He told me that when countries do this with their currency in causes inflation.
Am I remembering what he said correctly or is this completely wrong?
Also why does this cause inflation?
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