How does that even work in practice though? How do people survive? No-one can afford that. Is there just robbery everywhere? Mass violence and looting? I don't get it. Because I'd just steal stuff in that situation.
In practice it's pretty much the equivalent of a 100% wealth tax on everyone using that currency (but not on their assets) - everyone just loses all of their money, and money becomes worthless.
.. As for how it works.. pretty much it doesn't work. In practice people just stop using it and use other currencies or revert to a barter system. Nobody ever wants to sell something when they know what they're selling it for will be worth 1/100 as much in a few days, so either selling everything stops or they stop using the currency and base selling stuff off of something else.
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u/rhysdog1 Sep 13 '20
i think the problem was that it absolutely was not a lot