This question is (just like my first) quite hard to ask just in the title, sorry!
Short summary: (no extra information, if you're interested, read the explanation, not summary)
In a novel I'm writing, a country undergoes an emigration crisis due to outside causes, losing around 60% of its population, (also up for change, 60% is a lot for a country of 50 million, ) and creating moderate (or severe, I don't have many other deflations in the real world to compare it to) deflation. This makes the value of 5 USD be 1 USD. I have problems with this, including that 5-1 deflation from supply and demand differences may be insane. Read more if you'd like to know the whole question!
I've recently been writing a novel, where, in the past, the country that it takes place in, undergoes moderate deflation. As an example, what I'm imagining is that this deflation would be enough to make the value of (the equivalent of) $5$ USD would go down to $1$ USD. The reason for this would be a recent emigration crisis, (due to outside causes) making the population go from ~50-60 million to ~10-20 million. This would leave businesses overproducing, creating so much product that there aren't enough consumers to buy the product itself. This difference between supply and demand would create this deflation. Extra details will be listed at the bottom.
My main problems with this idea:
First of all, an obvious problem of mine is that 5-1 deflation is insane. This question has an easy answer either way, either to change it or to not. Another problem of mine is that this amount of emigration may be a bit much, ~30-40 million people emigrating is A LOT, especially for a country of only ~50-60 million. I don't think that emigration of this size is too probable, but if it is, tell me why! One more is that, a country with (the equivalent of) a GDP of ~100 billion USD is alright, especially for a country of around the size of modern day Macedonia (FYROM). If the country is this small and has a great GDP, would it actually deflate? If you have any questions for this question too, comment, unless you have an answer and a question, just answer with that! Thanks for reading, I'll list some extra details in a list now!
Already said, for clarification
-The country is the around the size of Macedonia (FYROM).
-The country has a GDP of ~100 billion USD.
-The country's population before the emigration crisis was ~50-60 million.
-The country's population after the emigration crisis is ~10-20 million.
-The country recently went through an emigration crisis.
-This deflation is 5-1.
Not said yet, new information
-The emigration crisis took ~5-10 years.
-The main market of the country is farming, specifically crops like corn and soybeans.
-The cause of the crisis would be due to threats of nuclear war from a violent neighbor country.
-The country borders the ocean. (Lets the emigrants go via boat to another continent.)
-The country is most Democratic.
If you have an answer, please feel free to share it!
(please make sure to tell me if you have any other questions or want an edit)
Other 2 questions relating to this story, unrelated to this question: Would a fascist rebellion be able to take over a mostly libertarian country? | How long would a utopia last until it would collapse?