THINGS GOVERNMENTS DO TO MONEY - A RECENT HISTORY OF CURRENCY REFORM SCHEMES AND SCAMS

Confiscation of currency has sometimes occurred through the fine print of currency reforms. While only a small fraction of currency reforms world-wide have masked a confiscation, when they don't they are likely to follow a hyperinflationary bout. Thus, one way or another, currenc y reforms are emblematic of government reneging on its most idiosyncra tic liability or extracting monopoly rents from its provision of an ex change medium. This paper reviews the international experience with cu rrency reforms over the last fifty years. It focuses on the purported justifications, mechanism for implementation, common pitfalls and reve nues associated with actual discriminatory currency conversion exercis es.