2 ms·

There is literally one definition of bankrupt, and hyper inflation has nothing to do with it. Plus, in general hyper inflation means people in debt get relief,

• dragonwriter 4y ago
  > There is literally one definition of bankrupt There are at least two, the legal definition of “under administration under bankruptcy laws“, and the less formal but still common “insolvent”. With a representational commodity currency (e.g., silver certificates) rather than fiat currency, insolvency (the inability of the issuer to redeem outstanding currency at face value) is at least reasonably connected to the risk of hyperinflation. OTOH, neither definition even applies to fiat currency issuers, who literally cannot be insolvent in their own currency, and usually aren’t subject to bankruptcy law.
  • thaumasiotes 4y ago
    > OTOH, neither definition even applies to fiat currency issuers, who literally cannot be insolvent in their own currency, and usually aren’t subject to bankruptcy law. They can find that they are unable to use their own currency to do anything. This is practically equivalent to being insolvent, even if you give it a different name.