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> In a way, Germany was incentivized for hyperinflation. The importance of that cannot be overstated. If you look at the major examples of hyperinflation, the
by throw0101a 5y ago
> In a way, Germany was incentivized for hyperinflation. The importance of that cannot be overstated.
If you look at the major examples of hyperinflation, the majority fall into three buckets:
* Losing a war that results in money printing to fund the effort.
* Large foreign denominated debts that require domestic money printing.
* Regime changes generally coinciding with civil war or social upheaval.
See Roche (2011):
* https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1799102 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1799102
- imtringued 5y agoAdd economic sanctions (Venezuela) and intentional destruction of food production (Zimbabwe) to that list.
- throw0101a 5y ago> Zimbabwe A quick history: * https://clintballinger.com/2020/04/30/airplane-crashes-arent-hyperlandings-notes-on-zimbabwe/ https://clintballinger.com/2020/04/30/airplane-crashes-arent... Another example of not bothering with the context of the situation: > I am dismayed by the way writers insist on reporting the collapse of a currency as a “monthly inflation rate” with some ridiculous figure associated that helps a normal person not-at-all understand anything (e.g., Yugoslavia in 1992-94: highest monthly inflation rate = 313,000,000%!!!!) > They had a war. Their government collapsed. They couldn’t tax. They couldn’t produce. Their currency collapsed. The idea that “313,000,000%” tells us anything of interest is ridiculous. A few newspaper headlines on peace treaties, troop movements, famine, reconstruction—literally anything— would be infinitely more informing. * https://clintballinger.com/2021/01/12/the-myth-of-hyperinflation/ https://clintballinger.com/2021/01/12/the-myth-of-hyperinfla...