Friday 17 July 2015

A usual behavior when high currency devaluation is feared


It happened exactly the same in Argentina, during the 2000's crisis. People would opt to spend their money on luxury or durable goods, in order to secure the value of their current savings, instead of keeping it and face a possible massive devaluation. Businesses typically also do the same in these circumstances, opting to stock goods instead of keeping liquidity, for the same reason - securing the value of the money they have.

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