Business, 30.11.2019 04:31 editsa

If a currency reform has no effects on the economy's real variables, why do governments typically institute currency reforms in connection with broader programs aimed at halting runaway inflation? (there are many instances in addition to the turkish case mentioned in the text. other examples include israel's switch from the pound to the shekel, argentina's switches from the peso to the austral and back to the peso, and brazil's switches from the cruzeiro to the cruzado, from the cruzado to the cruzeiro, from the cruzeiro to the cruzeiro real, and from the cruzeiro real to the real, the current currency, which was introduced in 1994.)

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If a currency reform has no effects on the economy's real variables, why do governments typically in...