Expert: Docs99 - 9/20/2009

Question
in countries like great depression Germany, and current Nigeria, money gets little enough value that it is nearly impossible to use(ie, needing a wheelbarrel of money to buy a loaf of bread), but why can't the transportation problem be solved by putting ore zeros on the bill?

Answer
Thank you for your query. In fact, this has been done. Take Argentina, its currency drop several zeros between the seventies and early nineties. The reason then was that the computers could not cope with so many zeros. Also Chile did something similar. In Bolivia, during hyperinflation, the prices were set in "units of account" e.g. color dots.  When countries undergo such hyperinflationary periods, a hard currency or barter takes over. In Argentina,at that time, for example, US Dollars were accepted openly by businesses.  Hope this helps.  You may want to consult a book on Economic History of the XXth century. Am sure you will find more examples.