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It's a consequence of political collapse, because only a degenerate political system would make the disastrous decision to engage in hyperinflation. But the ca
by radford-neal 8y ago
It'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.