Value of money must increase...

Just like loose monetary-policy, loose Fiscal-Policy too is responsible for currency de-debasing... If we are going to follow China then we will have to go through currency re-denomination every-time inflation is too high... Too much inflation debases the currency and people start carrying large volumes of money which is unnecessary, therefore, countries apply currency-re-denomination which reduces the volumes of notes and makes the new currency re-denomination stronger, the new currency will be stronger. Higher re-denomination indicates loss in the value of money… But, the logic is, if everything’s’ value grows as time passes and investments we make also grow, then why the value of money decreases as the time passes… The trend across the developed countries is that their population rate of growth are contracting which means less demand for their products and they are now too much dependent on exports for growth, therefore, we can conclude that as the time will pass supply will eventually outstrip demand and prices will start falling, in one word- deflation, as we have experienced in Japan, the US and many parts of Europe… Therefore, the pattern we are observing is that prices will fall as the economy will grow and supply improves… But, prices can not fall below the lowest denomination of any currency and in this situation if we want more demand we can choose to increase the real value of money, a rise in real wages, incomes and profits… by applying a lower re-denomination of the currency... But, in lower re-denomination the old currency becomes stronger and the value of money increases…