3 ms·
To add to this, hyperinflation is not a monetary phenomenon, it is a consequence of political and economic collapse. Everywhere and always hyperinflation is the
by User23 8y ago
To add to this, hyperinflation is not a monetary phenomenon, it is a consequence of political and economic collapse. Everywhere and always hyperinflation is the result of political catastrophe, be it losing a war or something self-inflicted. Hyperinflation is possible in the USA, but if and when it happens the cause will observably be a political one.
- radford-neal 8y agoIt's a consequence of political collapse, because only a degenerate political system would make the disastrous decision to engage in hyperinflation. But the causality from political collapse to hyperinflation almost always passes through monetary expansion. The only alternative would be for the public to just decide they no longer care about those little pieces of paper, regardless of how many of them there are. But history shows that there is great inertia in this respect, with money continuing to be used even when inflation rates are very high.