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Old 11-06-2006, 07:41 PM
FortunaMaximus FortunaMaximus is offline
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Default Re: Economics: Removing Zeros from Currency Causes Inflation?

You could compare the trend lines of those two currencies pre and post changeover with, say, the Argentine peso, which did also suffer a severe runaway inflationary effect fairly recently.

I'd be surprised, however, if there wasn't a slowdown in the pace of inflation after the changes were introduce, instead of the reverse. Human nature is cautious when dealing with new stuff. I think of a Russian going, "Matyervebets, what is this worth again?" and basically taking the time to figure out the difference.
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