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Price inflation is caused by - increased money supply - decreased demand for money - increased demand for the good - decreased good supply The 11 million perce
by gohbgl 9y ago
Price inflation is caused by
- increased money supply
- decreased demand for money
- increased demand for the good
- decreased good supply
The 11 million percent price inflation rate in Zimbabwe was not caused by a 11 million percent reduction in goods supply.
- jimmywanger 9y agoIf your currency is suffering from hyperinflation, your currency is worthless on international markets. Why would they take money in a rapidly depreciating asset instead of just demanding hard currency that holds value decently well? That starts mattering when you have nothing really to export and still require supplies (parts and food) from foreign countries. It's shocking how connected and interdependent industries are now. I can't think of a single thing produced that doesn't need foreign inputs for production. Even apples need ladders for harvest, when one breaks, pesticides and fertilizer.