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Good explanation of how and why countries redenominate or 'drop the zeros' DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Good explanation of how and why countries redenominate or 'drop the zeros'

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Good explanation of how and why countries redenominate or 'drop the zeros' Empty Good explanation of how and why countries redenominate or 'drop the zeros'

Post by therealbutterfly Mon Feb 06, 2012 4:22 pm

http://www.unc.edu/~lmosley/APSA%202005.pdf


Hope that some of you read this and understand how and why countries drop zeros and what that really means. Its very informative and unbiased.
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Good explanation of how and why countries redenominate or 'drop the zeros' Empty Re: Good explanation of how and why countries redenominate or 'drop the zeros'

Post by az-tex Mon Feb 06, 2012 4:34 pm

I drop "hot potatoes" ....

Ooops.... Did I go off topic??? Embarassed Laughing Wink

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Good explanation of how and why countries redenominate or 'drop the zeros' Empty Re: Good explanation of how and why countries redenominate or 'drop the zeros'

Post by CaptnJerry Mon Feb 06, 2012 4:54 pm

Great find TRB... Incredible paper. Gonna have to spend some time studying tonight when I get home from work...

CJ

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Inspired by Splovengates "Be ready between sunday and monday night, or maybe tuesday or wednesday, could also be thursday but definitely by friday.... probably next week, monday or late tuesday night, wednesday morning to hear the rv and should be cashing in on the following tuesday the 1st part of january or february. Sooner more than later. But no later than the beginning of 2013. Certainly not before then. Until then, let's enjoy the ride!


Good explanation of how and why countries redenominate or 'drop the zeros' Animated-smileys-leisure-013 Come on RI/RV!
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Good explanation of how and why countries redenominate or 'drop the zeros' Empty Re: Good explanation of how and why countries redenominate or 'drop the zeros'

Post by therealbutterfly Wed Feb 22, 2012 2:20 pm

Bumping this because people seem confused as to what a redenomination is vs a devaluation.....




Currency redenomination also can be a means by which governments attempt to reassert
monetary sovereignty.
If citizens lose confidence in the national currency, they may begin to use
foreign currencies, particularly those with greater prestige. This may be both a psychological and
an economic blow to the government: with widespread foreign currency substitution (or, more
extremely, full dollarization), the central bank no longer controls the money supply, rendering it
unable to provide lender of last resort functions (Cohen 2004). Economic policy is influenced
not only by international capital markets (e.g. Mosley 2003), but also by foreign central banks.
Currency redenomination, then, is a means by which governments can attempt to reverse this
currency substituting behavior: if citizens are confident that the new Turkish lira will hold its
value, they may be willing to shift from using euros and dollars to using lira. While the act of
dividing a currency’s value by a factor of ten is somewhat symbolic, it also can help to convince
citizens of a currency’s worth.
As a result, redenominations often occur after economic crises, as
governments attempt to convince citizens and markets that hyperinflation is a thing of the past.
In some cases, the timing is correct, in that redenomination caps off high levels of inflation
. In
other cases, governments are not able to reign in inflation immediately after redenomination,
and they may make multiple efforts at currency reform. Argentina and Brazil during the 1980s
and early 1990s exemplify this pattern.
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Good explanation of how and why countries redenominate or 'drop the zeros' Empty Re: Good explanation of how and why countries redenominate or 'drop the zeros'

Post by CaptnJerry Wed Feb 22, 2012 9:17 pm

TRB, I added this to the sticky article...

CJ

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Inspired by Splovengates "Be ready between sunday and monday night, or maybe tuesday or wednesday, could also be thursday but definitely by friday.... probably next week, monday or late tuesday night, wednesday morning to hear the rv and should be cashing in on the following tuesday the 1st part of january or february. Sooner more than later. But no later than the beginning of 2013. Certainly not before then. Until then, let's enjoy the ride!


Good explanation of how and why countries redenominate or 'drop the zeros' Animated-smileys-leisure-013 Come on RI/RV!
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Good explanation of how and why countries redenominate or 'drop the zeros' Empty Re: Good explanation of how and why countries redenominate or 'drop the zeros'

Post by therealbutterfly Thu Mar 01, 2012 5:45 pm

Bumping this to hopefully explain why countries redenominate even tho it doesnt raise the value per se...... Hope this helps!

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Good explanation of how and why countries redenominate or 'drop the zeros' Opinio10
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