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I still don't get how inflation numbers like these can even exist. You would think that after a certain threshold a currency is basically at 0 and nobody uses it at all. But somehow it isn't the case here.
Your question deserves a lot more academic attention I think, I really don't know how we got "used to" this inflation but maybe it has to do with all the propaganda that is feed into the news and willful blindness
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Your logic checks out. But, not only you have NPCs hopping and waiting for things to get better, the state will also use all the tricks in their books to prevent capital flight.
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