|
Title: Penny Rounding Currency Divisibility and Politics Post by: freedomno1 on May 16, 2014, 09:55:53 AM Does it make more sense for a currency to round up to the next smallest unit when inflation impacts it or for a currency to rebase itself so that its smallest denominator has more purchasing power.
Penny --> Nickel Rounding (or) Penny Revalued to have more power new currency issued to addressed increasing inflation. Debt revalued at equivalent currency with conversions example 5 old penny's convert to 1 new penny. Debt based on new currency and readjusted for purchasing power by that fraction. Or would it make sense for a digital currency to take the lead to address inflation by moving to the next smallest unit but retaining its value BTC --> MBTC Digital Currencies and their potential utilities Since one needs to give in eventually either to inflation or rounding to nickels or revaluation where we see the penny increase in value and reintroduced someday with more purchasing power, what alternatives seem most viable or is it all going to digital? Or should currencies just wait to collapse and then sort themselves out from there? Simply put currency revaluation is not politically attractive or societally seen as viable so keep it running till it crashes or next election. Like the Mexican Debt Crisis. Anyways haven't seen this one thrown into a discussion yet so Debate or Discuss ;D http://en.wikipedia.org/wiki/1994_economic_crisis_in_Mexico http://www.washingtonpost.com/lifestyle/kidspost/do-pennies-make-sense/2013/03/01/36340140-7d34-11e2-9a75-dab0201670da_story.html |