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Hyperinflations are Political Events, Not Economic Ones

Welcome! Forums The Big Picture Hyperinflations are Political Events, Not Economic Ones

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    Emma Walsh

    From the B&P Briefing dated Wednesday, March 18:

    The important thing to remember is that history shows hyperinflations are political events, not economic ones.

    As Steve Hanke, a professor of applied economics at Johns Hopkins University and an expert in currencies, points out: ‘Hyperinflation arises only under the most extreme conditions, such as war, political mismanagement, or the transition from a command economy to a market-based economy.’

    A quick rundown of some of the most prominent 20th-century hyperinflations – Angola (war), Argentina (dictatorship), Germany (war), Russia (post-Soviet collapse) – backs this up.

    Bill reckons the dollar-based fiat monetary system will crack up, as central banks continue to debase their currencies to steal growth from one another. But this will affect ALL fiat currencies, not just the dollar.

    There’ll come a time when fiat money becomes such an obviously poor store of value that we’ll return to some form of commodity-backed currency.

    Will we get hyperinflation in the US?

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