Hyperinflation

Mark McIlroy April 10th, 2022




Hyperinflation typically occurs when a government ceases to govern effectively. 

A new leadership may be required when this happens.

Regarding economics, the cure for hyperinflation is to increase taxes and ensure that the government operates a balanced budget.

If a government is not collecting sufficient revenue in taxes, there are only two other ways that it can source the funds that it needs for government expenditure. These are to borrow the funds, or to print money.

Typically this involves printing money which is the primary source of hyperinflation.