The Impact of Denomination on the State Economy

Abstract

Denomination (Latin denominátio - "denomination") - change of the nominal value of banknotes (that is, by reducing the numerical scale). After the hyperinflation, stabilization of the currency and simplification of the calculations are carried out. This is the process of changing the nominal value of the currency by subtracting zeros from the banknotes or pennies. Inflation, especially hyperinflation, which can make it difficult to use the state currency in daily operations, is taken into account. Denomination helps to simplify the transactions of all people by simplifying the currency relations, it is possible to restore the value of the currency of the world. It should be noted that denomination does not mean demonetization. Denomination is a change in the value of the national currency, and demonetization is calculated by removing the value of the national currency from circulation and replacing it with new currency. Since the 1960s, countries have denominated their own currencies in more than 70 countries. Denomination is the goal of achieving certain fiscal and economic goals, and the goal is to reduce zeros in the national currency. (1)