Hyperinflation Is Overhyped

Sep 4 2012 @ 4:46pm

Felix Salmon digs through the history books: 

[H]yperinflation, in and of itself, really isn’t anything to worry about. It’s pretty much impossible to predict — and if your country has hyperinflation, it almost certainly has even bigger other problems. In fact, I’d hesitate to categorize hyperinflation as a narrowly economic phenomenon at all, as opposed to simply being a symptom of much bigger failures at the geopolitical level. Those failures are exacerbated by hyperinflation, of course: there’s very much a vicious cycle in these episodes. But you only ever find hyperinflation under extreme conditions, and, with a single exception (Peru), I’m not even sure I can find any genuine democracies on this list.