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by marcosdumay 4035 days ago
Hyperinflation is a completely different game. Your explanation also does not cut it, because a country's GDP simply does not reduce 1000 times in a month, month after month for years. You can not have it if your government isn't printing money like mad.

Also, no the 4 QEs of the US since 2008 weren't not nearly enough to create hyperinflation. They are not even growing exponentially.

1 comments

>a country's GDP simply does not reduce 1000 times in a month, month after month for years. You can not have it if your government isn't printing money like mad.

Yes, but the trigger almost never a government that goes insane and decides to print money like mad. The money printing is ramped up in an attempt to maintain the same level of spending in response to a supply shock.

>Also, no the 4 QEs of the US since 2008 weren't not nearly enough to create hyperinflation.

QE actually causes retail deflation. Which is counter-intuitive, I know.

(the reason is that money printing doesn't cause inflation - spending does, and QE actually reduces spending in non-investment products)