Understanding Redenominasi
Redenominasi term rupiah spread to the public several days ago.
As one economic terms, redenominasi can be a slippery term that may deceive the listener. Redenominasi slick implementation in many countries is often not smooth and requires a long process. There are countries that successfully implement it, but there are also countries that are still struggling with economic problems despite redenominasi applicable currency.
Redenominasi term is not an alien thing in the economy. Means the currency denomination of the reference unit for the price of a country's currency, both in units of coins or paper. Let us mention the denomination currency with the amount of USD 1000, USD 100 000, and so on.
Another term redenominasi means any mention of back or simplification of the unit price and the value of existing currency. Units of USD 1 000 are reduced to USD 1, for example. This applies to the overall prices of goods and services in the country. A loaf of bread that had cost Rp 1000, also simplified to USD 1. In this case, no one harmed from redenominasi system. The aim is also the counting efficiency in payment systems.
This is not sanering Redenominasi. This last term is the withholding of money. When sanering, the amount of money withheld, but the prices of goods and equipment. Sanering causing people's purchasing power cut. For instance we pay the amount of Rp 5 million, hit by sanering to Rp 5. While the price of a loaf of bread fixed USD 1000. That is, people's purchasing power would decrease drastically with the sanering. We are so no longer afford to buy bread. Usually, sanering done in an unhealthy economic conditions and inflation that soared out of control.
Understanding this so Redenominasi, may be useful for colleagues of all, Thank you.
Redenominasi term rupiah spread to the public several days ago.
As one economic terms, redenominasi can be a slippery term that may deceive the listener. Redenominasi slick implementation in many countries is often not smooth and requires a long process. There are countries that successfully implement it, but there are also countries that are still struggling with economic problems despite redenominasi applicable currency.
Redenominasi term is not an alien thing in the economy. Means the currency denomination of the reference unit for the price of a country's currency, both in units of coins or paper. Let us mention the denomination currency with the amount of USD 1000, USD 100 000, and so on.
Another term redenominasi means any mention of back or simplification of the unit price and the value of existing currency. Units of USD 1 000 are reduced to USD 1, for example. This applies to the overall prices of goods and services in the country. A loaf of bread that had cost Rp 1000, also simplified to USD 1. In this case, no one harmed from redenominasi system. The aim is also the counting efficiency in payment systems.
This is not sanering Redenominasi. This last term is the withholding of money. When sanering, the amount of money withheld, but the prices of goods and equipment. Sanering causing people's purchasing power cut. For instance we pay the amount of Rp 5 million, hit by sanering to Rp 5. While the price of a loaf of bread fixed USD 1000. That is, people's purchasing power would decrease drastically with the sanering. We are so no longer afford to buy bread. Usually, sanering done in an unhealthy economic conditions and inflation that soared out of control.
Understanding this so Redenominasi, may be useful for colleagues of all, Thank you.
