3 ms·
The reason they managed to create hyperinflation is because when you print more currency, inflation doesn't immediately change in reaction. So they ended up pr
by econcon 7y ago
The reason they managed to create hyperinflation is because when you print more currency, inflation doesn't immediately change in reaction.
So they ended up printing more and more till, it all corrected at once and hyperinflation was already here before they could roll back their currency printing machines.
They took a practical approach to managing inflation yet paying off debt obligations with more currency but didn't realize it all could backfire - they didn't do something as stupid as others will have you believe.