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by tqi
1655 days ago
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Many here have pointed out that the difference between 6.2% and normal inflation is not meaningful for businesses. And that makes sense. I'm curious what if anything companies/founders could do in the event of actual hyperinflation? |
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The only thing that ends hyperinflation is a return to rationality, which is generally brought about by some sort of market crash. In 1994, Brazil used a different tactic, though: they scrapped their old, inflating currency, and created a new one, which they simply told the people was stable and not hyperinflating[0]. What it really was was a profound demonstration of the fact that microeconomics is really a strange branch of applied psychology.
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[0]: https://en.wikipedia.org/wiki/Plano_Real