Inflation
My houseguest comes across some very old paper money from the U.S. and interestingly more than a few South American Countries. I noticed that one of the $5.00 bills was a silver certificate from 1934. The bill was in really good condition but had probably been in circulation for a while. As a collectors item it isn't really worth much more than face value.
On the other hand there were some Bolivian peso notes. In 1962 the official exchange was 11.875 bolivianos to $1 dollar US. By 1986 the exchange rate was 1.9 million bolivianos to $1. It's now 2013 and I doubt the Bolivian Pesos are worth the paper they were printed on but I need to do some further research. I looked at Wikipedia quickly and saw that for a while the government stopped printing money because it couldn't keep up with the falling value of the notes it was printing. A situation like that is really hard to imagine.
Currently in this country the interest rates are so low that you lose a small amount of money by keeping it in a savings account after taxes and inflation.
On the other hand there were some Bolivian peso notes. In 1962 the official exchange was 11.875 bolivianos to $1 dollar US. By 1986 the exchange rate was 1.9 million bolivianos to $1. It's now 2013 and I doubt the Bolivian Pesos are worth the paper they were printed on but I need to do some further research. I looked at Wikipedia quickly and saw that for a while the government stopped printing money because it couldn't keep up with the falling value of the notes it was printing. A situation like that is really hard to imagine.
Currently in this country the interest rates are so low that you lose a small amount of money by keeping it in a savings account after taxes and inflation.
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