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So that its currency has value? The government does not benefit from hyper inflation.

• dnautics 9y ago
  The whole point of hyperinflation is to devalue sovereign debt. The ONLY entity that benefits from hyperinflation is the government.
  • wz1000 9y ago
    The government doesn't benefit from hyperinflation, it benefits from wiping out its debt. Taxing away the excess money after it has finished doing that prevents hyperinflation while still reducing debts. The government has the most to lose from hyperinflation, because without currency anyone will accepts, the government is severely reduced in power. With a healthy currency, the government has nearly unlimited ability to finance itself.
  • jganetsk 9y ago
    Causality is backward here, really. Government debt and money are effectively the same thing. Growing government debt is growth in the money supply, which can lead to inflation. Governments don't try to devalue sovereign debt, they try to pay off their foreign debts. For that, they buy up all foreign currency in the market, sending the value of their currency plummeting.