Workaccount2 2 days ago

>In practice, people saw the Turkish currency reform as merely a cosmetic change, not an actually reduction in the money supply.

Because it is just cosmetic. Governments chronically think they can directly legislate more value into existence. They fail to understand that currency is just an intermediary for trading labor.

1
eru 1 day ago

No, no, at the time Turkey had actually done all the hard work of getting their currency (mostly) in order. They (or at least the technocrats running the central bank) knew perfectly well that they can't "directly legislate more value into existence".

The extra zeros were just a bit of an embarrassing hangover from wilder times in the past.

Alas, the quality of Turkey's monetary policy has since dropped again.