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Showing content from https://mail.python.org/pipermail/python-dev/2002-December/031275.html below:

Adding decimal (aka FixedPoint) numbers to Python

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[Greg Ewing]
> This is true for + and -, but not * -- you need the
> sum of the input precisions to avoid losing information
> in that case.

Yup.  The module docs have the full story.

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