Economics Questions

Re: If it is true that fiat money never lasts, why do countries like Australia

FreedomIsYellow — Tue, 16 Jun 2009 14:44:14 GMT

Can't comment on Australia personally, but in an economy any amount of money is fine - as long as it stays constant. So yes, in theory if Zim did not inflate their currency any further and kept the amount the same, then stability would return.

The problem with fiat currencies, however, is that states simply cannot be trusted not to print money at some point.

Re: If it is true that fiat money never lasts, why do countries like Australia

tacoface — Tue, 16 Jun 2009 13:55:23 GMT

our currency went from 98 us cents to 58 in a month last year. and the reserve bank has cut interest rates to fuck all just like every other country.

you continually ask stoopid questions, go and google it next time

If it is true that fiat money never lasts, why do countries like Australia

inquisitiveteenager — Tue, 16 Jun 2009 13:47:19 GMT

seem to manage fine with a fiat currency, I don't see their currency crashing, it is managed fairly well.

Also, say a country like Zimbabwe, they have huge problems with inflation. If they stopped inflating the money supply but still had heaps of money in existence, would they need to start deflating.?

Sennholz states that the supply of money is not importnat, using this logic, would it matter if Zimbabwe had plenty of notes, so long as it was a constant amount?