NationStates Jolt Archive

After reports of the economy contracting 62% after a fury of antitrust lawsuits, speculators began betting against the formally stable Joint [ALJ1,2 = USD1], and many began converting their currency on the black market. The Joint plumetted to 10'000 to the dollar, in which the new Blunt [equal to 1'000 joints] was introduced. Apparently, knocking off zeroes did not work, and the joint fell to 2,5billion to the dollar as people converted every joint they had into gold, silver, or crystal meth. Now, the Alexonium government is cutting back, hoping to restore the economy. The Emir no longer wears Gucci in public to encourage savings and financial prudence. Subsidies to hemp growers have been put up in smoke, and port fees [15% of the Alexonium economy, mostly from drug smuggling] have been increased to better reflect market conditions. The PurpleHaze Joint [ALP] now trades at about 3 to the dollar, and all is now right in Alexonium, as most are confident further problems will be averted in the future.

i'm sorry to say that saving does not work against hyperinflation. You must restore the confidence in the currency, by encouraging consumption...
Money has to roll fast, and that's how hyperinflation is averted

The people must have something to fall back on in the event of hard times...be it currency in savings accounts or new inflatino-adjusted pensions. We have compensated all pensioners for back benefits thankfully, as well as interest from any loans taken out to cover their expenses. We are now looking on pegging the PurpleHaze Joint to gold reserves, and passing legislation mandating that the Central Bong only print 10000 PHZ for 1,5 kg of gold. Furthermore, the Emir has ordered that this law be held in perpetuity, meaning that as long as this government is in existance, the PHZ has value. This has only been done to 15 other laws.

-Eric Alrekson, Spokesperson, Central Bong of Alexonium