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Denomination

The life of people is poor as having illustrated by inflation and deflation when inflation is caused. Thus, the government and the central bank which publish money when inflation happens must take the measures. One of the measures includes redenomination, popular name redenomination. This is to devaluate all a unit of money in the ratio of uniformity.

For example, a price of one juice does it because inflation advanced when it became 12,000 yen. When it comes to this, it is very inconvenient to need a large quantity of paper money to buy what. For example, I do a one-100th denomination, and, here, it is said that I changed a unit into new yen. Then the price of one juice becomes 120 new yen, too. However, it becomes new 800 yen after denomination because of course the salaries are performed denomination of uniformly even if, for example, an hourly wage was 80,000 yen. Because of intense inflation, it is Brazil to be famous as the country which did repeated denomination. When I change a unit into cruzeiro from real in 1942 and perform a one-1000th denomination, for 1,967 years, I perform a one-1000th denomination each in 1986.

However, after redenomination of this 1986, the denomination that four times in total, value of the money finally became a one-2,750,000,000,000th during eight years was carried out. It is due to the anti-inflation measure "real plan" that went of the Brazilian government why it is a half-finished number in this way. Brazil introduces the fixed exchange rate system of 1 US dollar = 1 real to stabilize economy. Because I performed the denomination of an odd rate of a one-2750th to realize this market price then, the denomination of the finally half-finished ratio was performed. After this, I return to the floating rate system again in 1998, and it is as a currency supporting a big driving force and the large country where it is, Brazilian economy moves the world economy now.