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>The inflation in these countries is not because of the way their economy is structured but because lack of structure and integrity. Hyperinflation is a moneta
by logicchains 5y ago
>The inflation in these countries is not because of the way their economy is structured but because lack of structure and integrity.
Hyperinflation is a monetary phenomenon. If the government prints a bunch of money, the purchasing power of people holding the currency will go down. If the money supply was fixed, there couldn't be such inflation (if it was completely fixed, this could cause other issues, but not hyperinflation).
- arcticbull 5y agoYou're neglecting the impact of velocity of money. Supply is only half the equation. [1] [1] https://www.stlouisfed.org/on-the-economy/2014/september/what-does-money-velocity-tell-us-about-low-inflation-in-the-us https://www.stlouisfed.org/on-the-economy/2014/september/wha...
- JumpCrisscross 5y ago> If the money supply was fixed, there couldn't be such inflation Historically inaccurate. If the economic base vanishes, inflation—even hyperinflation—will manifest. Fixed quantity is no panacea. What matters is the ratio between money supply and the economy. This is why, when the industrial revolution switched humanity from stable state/near-zero growth to positive-growth mode, we matured past the gold standard, first to bimetallism and finally to fiat.
- pibechorro 5y agoLol infinite growth as mature. Tell me another.