How come some countries choose to have inflated currencies even after their economies are strong? Like 1 USD is still over 100 Yen. How come they don't just add a decimal in somewhere?
I have no idea how economics work.
How come some countries choose to have inflated currencies even after their economies are strong...
Jace Flores
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Carson Wright
Because having a strong currency doesn't make you richer.
Jaxson Butler
Doesn't it start to get a little goofy when little things cost 1000 yen or 20,000 dongs?
Lincoln Rodriguez
Thats just the way it is man dont question the system
Cooper Nelson
If Americans can handle a national debt of $21039108045933 I'm sure the world can also handle big numbers.
Landon Thompson
Having an "inflated" currency is good for exports (but bad for imports). Which is beneficial to an export driven economy like Japan or China.
I don't understand the economics of it really, but it's a common wisdom I've heard. Something like: if $500 buys a shit TV in your country, then you're going to have hard time selling your state of the art locally produced new TV brand abroad, since an endurable $1,000 TV is maybe $1,400 in exchange rate. If your local commodities are shit priced, relative to the world, then people will love to import them over their local produce so long as the drop off in quality isn't severe.
Aiden Martinez
Its because China is largely an exporting country which means they want their products to be cheap.
Joshua Johnson
>can't work with numbers with more than three places
American education, everyone.
Carson King
I'm just saying it seems pointless to have that many zeros when it's just an arbitrary number to relate values you dumb europoor
David Diaz
Say what you will, but they don't have to worry about pennies or shillings or farthings.
Connor Torres
The world is not a perfect zero-sum game, but its close enough.
So if you can undercut your opponent, you will net the profit. It might be bit less than the if your opponent didn't exist, but if your opponent won, then you won't have any.
Aiden Gutierrez
>lmao why the fuck 100 US cents cost 100 yen kek?
Colton Roberts
>people in this thread
kek, yall should stick to history and not try amswering something you dont know jack shit about
Austin Cooper
Check out this cool dude. I bet he knows all kind of things. Super impressive.
Jeremiah Smith
>Veeky Forums
>knowing shit about history
Josiah Price
It's costly and logistically complicated to change
Henry Gonzalez
China's isn't even that bad though. It's Japan and Korea that have the crazy ones
Jayden Hill
>The world is not a perfect zero-sum game, but its close enough.
If the world were close to a zero-sum game, we would still be stuck in the stone age.
Retard.
Jonathan Sanders
The process of inflation is what hurts a currency. if a currency has hyper-inflated up to a point but stays where it is, so long as the economy hasn't imploded everything readjusts to the new normal.
It's weirder with currencies that are not so valuable. Consider the Philippines Peso, which is currently sitting at 52 to the dollar. 1 Peso is worth 100 centimo's, which is the most worthless coin one could possibly hold.
Camden Phillips
M8 I'm with him. There's a point where having 1,000,000 dong in your pocket is kinda funny.
Aaron Nelson
You realise that 100 yen is equivalent to 100 cents right?
Dylan Green
They just don't bother with decimals, I don't think they had the mathematical concept of them pre-Meiji.They're no much weaker than the USD in practical terms.
Luis Baker
You realize that a yen is more of the equivalent to the dollar right?
Samuel Cruz
>I have no idea how economics work.
Then start to read, you fucking illiterate nigger:
amazon.com
Easton Wright
Why have 1.00 yen when you could just do 100 yen? Its basically the same thing only yen doesn't have cents like the dollar does.
Its not like Zimbabwe where African math led to 1,000,000,000,000 Zimbabwe dollars adding up to one US dollar.
When the numbers get a little too crazy some countries switch currencies to erase zeros. Like the New Taiwan Dollar.
David Perry
>How come they don't just add a decimal in somewhere?
Admin costs. Other than habit it's literally the only reason.
You have to reprint your bills
Shops have to redo their price labels
Some IT chump at MorganChase has to update some lines of code
And then there is usually the complication of redoing price calculations in your head. But this is normally only the case when you don't just get rid of some decimals like you suggest. When some countries switched to decimal currency, getting rid of shit like farthings, shillings, etc, it caused mad confusion. Most shops had to put up signs explaining the currency equivalents so people could get their heads around.
Easton Adams
You could theoretically issue a new currency and make the old currency exchangeable to the amount, tho that said there's very little reason to do so except in actual crisis.