Is Russia threatened by the denomination of the ruble, as in 1998, and how it would affect ordinary citizens.

Analysts periodically raise the question of the possible denomination of the ruble. The last time this procedure was carried out almost a quarter of a century ago. Let's examine what it is and whether we should be afraid of its repetition.

Do not confuse the two concepts.

In 1998 devaluation went hand in hand with denomination (with a default looming ahead), so some citizens confuse the two notions, and some believe they are not separate at all. But although they both refer to money, there is not much in common between them.

Devaluation is a sharp depreciation of money in relation to foreign currencies and goods on store shelves. For example, a citizen goes to the store to buy a carton of milk for the usual 60 rubles and it costs 600 rubles. At the same time, he is offered to pay for it with exactly the same amount of money he has in his pocket. One just has to pay ten times as much. This is called devaluation.

Denomination, on the other hand, is a change in the face value of money. Often, extra zeros are simply removed. A citizen comes to buy milk for 60 rubles but it costs 60 kopecks. But this doesn't mean that the product is a hundred times cheaper, it's just that two zeros were removed from the bills and he won't be able to pay with the money in his pocket - first he will need to exchange the old 60 rubles for the new 60 kopecks and then return for milk (but there is an important point, which will be discussed below).

As you can see, in the second case his wallet will not suffer, especially since there is usually a transition period when denomination provides for a payment period in which one can pay for goods with both new and old bills (during the denomination of 1998 this period lasted until 2002). But the old money is gradually withdrawn from circulation, and the day comes when you can't buy anything for it. It is especially offensive to those who find old bills stashed away for a rainy day and forgotten after that day.

Should we expect denomination in the nearest future?

Probably, the high growth of inflation is felt by everyone. But it does not push up prices so strongly that the bread with three zeros is returned to the shelves and the question of denomination began to be seriously raised. Although it will be voiced periodically, as it was in previous years.

The time is passing, everything is changing and 500 roubles today is not the same at all as 500 roubles in 1999. Price tags and salaries have changed, but still not that much.

Personally, I think that the denomination will long remain only in the memory of those who caught it at the end of the 20th century. But history shows that making predictions in such areas is a thankless task. What do you think?