Why we should not amend the Reserve Bank Act

Now that Labour have abandoned 25 years of bipartisan commitment to sane monetary , we may need to get used to bank notes like if they win in future (unless they quietly drop their policy to have more ).

One NZ$ is worth around 4,000 Zambian kwacha, so that note is worth around NZ$1.25. Note that in 1968 the kwacha was worth more than the dollar.

Their largest note is for 50,000 which is NZ$12.50.

Yes that is a 100 trillion dollar note. Dr Evil, take that!

We shouldn't have to worry about this scenario unless it is a four-way coalition of Labour, , and Mana 🙂

In the note is “worth” more than 100 trillion as there were three redenominations. The first was a 1,000:1 redenomination, the second was a 10 billion:1 and the third a 1 trillion:1 redenomination.

So in terms of the original Zimbabwean dollar, that note is worth 1Ă—10^39 or 1,000,000,000,000,000,000,000,000,000,000,000,000,000, which could be called a duodecillion dollars.

This note was worth US30 when printed in 2009 but is worthless today. Their inflation rate in 2008 was 231,000,000%. It was only 28 years ago in 1983 that their dollar purchased US1.

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