Following a period of severe inflation, will we follow the lead of Japan or France?
In the mid-20th century, both Japan and France suffered relatively brief but severe periods of inflation (prices increased about 100 times over a period of roughly 10 years). The inflation was finally brought under control. In the case of Japan, the yen was never redenominated, so that today, one yen is worth about one cent. The French franc, on the other hand, was redenominated so that 100 old francs were set equal to 1 new franc.
Suppose that over the next 10 years, the US suffers a similar fate -- prices rise by 100 times, but things are finally brought under control.
In this situation, do you think we would redenominate the dollar, or would we follow the lead of Japan and go with the same currency but much reduced in value? (So, for example, a drink at Starbucks would go for about $ 400)