Thread: Economics: Removing Zeros from Currency Causes Inflation?
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Old 11-06-2006, 10:54 PM
mgsimpleton mgsimpleton is offline
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Default Re: Economics: Removing Zeros from Currency Causes Inflation?
The price level is not affected by nominal variables such as price. Reducing the denominations wouldn't affect the buying power of a day's wages.

Printing a new batch of currency would eat up a portion of the countries GDP, so the price level would rise slightly (inflation)
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