Re: Economics: Removing Zeros from Currency Causes Inflation?
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Psychologial, I suspect. It's been tried in Mexico, and Russia.
I'm not sure the inflation isn't simply already on an upswing when this measure is done anyway. In the case of those two instances, it was an runaway inflatory effect, IIRC.
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Could be right. He did cite those two countries as examples. I remember him saying that this did CAUSE higher inflation though. He of course could be wrong and doesn't understand the whole cause/coorelation difference. But I do think that is unlikely. I don't know I'll try to find out.
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