Attention Economy


Tuesday, January 29, 2019

Hyperinflation – Causes and Remedies

Causes of Hyperinflation
Ending Hyperinflation
https://www.economist.com/finance-and-economics/2019/01/29/hyperinflations-can-end-quickly-given-the-right-sort-of-regime-change

Paul Krugman’s brief summary of the Venezuelan crisis:
“What, after all, do we learn from the Venezuelan experience? Yes, the country is a mess. Venezuela has always been a one-industry economy, with huge inequality. Hugo Chavez got into power because of rage against the nation’s elite, but used the power badly. He seized the oil sector, which you only do if you can run it honestly and efficiently; instead, he turned it over to corrupt cronies, who degraded its performance. Then, when oil prices fell, his successor tried to cover the income gap by printing money. Hence the crisis”

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Related:
Hyperinflation in Zimbabwe

Famous economics paper from 1986:
Stopping Hyperinflations Past and Present by Rudiger Dornbusch and Stanley Fischer