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Great point! People want to get out of money as soon as they get it. The money velocity essentially approaches infinity as its value drops faster.

In this case, I think a new money supply is needed or no one will want to sell anything, as they’d be stuck with a much more depreciatimg asset.

I have a simple definition of money that I haven’t seen anywhere else:

Money is the most liquid asset in an economy.

What would that be in Venezuela at the moment? Rice?



> In this case, I think a new money supply is needed or no one will want to sell anything, as they’d be stuck with a much more depreciatimg asset.

Yes indeed, that's exactly how they solved this issue in Brazil: https://www.npr.org/sections/money/2010/10/04/130329523/how-...


Similar approaches were used during the French revolution [0], after the American revolution [1], and by the Nazis before the war [2].

[0] https://en.wikipedia.org/wiki/Assignat [1] https://en.wikipedia.org/wiki/Early_American_currency#Contin... [2] https://en.wikipedia.org/wiki/Reichsmark


People sometimes barter in the short term, but usually end up using another currency. In modern times, it's often dollars.




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