Wednesday, November 20, 2013
Hyperinflation is a market revolt not a political choice
Again and again I see people saying that hyperinflation is a "political event" or a "political choice". There are political events and bad choices leading up to hyperinflation but really hyperinflation is a market revolt against government debt and and deficit spending. Hyperinflation is a market response to bad politics, not the bad politics themselves. Never do politicians explicitly choose hyperinflation, they just keep trying to kick the can down the road further with deficit spending and then the market revolts.