Militia Man – Dinar Guru Purchasing power vs. redenomination – What’s the difference? With a redenomination there’s no purchasing power. It does “ease of use”…A straight redenomination, simply deleting zeros and issuing new notes, changes the unit of account – 1,000 old dinars become 1 new dinar or 10,000 become 10, depending on how many zeros deleted. It’s that simple. Prices, wages and contracts are rewritten by the same factor on paper. Nothing about the economy’s productive capacity, export earnings, reserve coverage or institutional trust is automatically improved. Redenomination does none of that. If the underlying conditions are weak, the new notes can lose value just as the old ones did…History is full of examples where zeros were removed. Inflation simply continued until new face. I don’t think Iraq fits that. [Post 1 of 2]