Talk:Hyperinflation
From Academic Kids
Talk moved from article:
"Do there exist any examples anywhere of scientific notation being used on banknotes?"
I suppose 4.19 quintillion means 4.19×1018 (US notation) and not 4.19×1030 (International notation). Maybe I'm wrong. In any case, could anyone please make it clear? Thank you. Sabbut 22:49, 26 Jan 2004 (UTC)
This line removed from article:
Nations such as Ghana in North Western Africa continue to this day to have inflation in the order of 30% per annum.
This is not an example of hyperinflation, merely of high inflation. --Geordieandy 13:14, 7 Mar 2004 (UTC)
Monthly rates of inflation in Brazil in the period 1978 - 1987 varied between 30% to 60%, i.e. several thousand percent per annum. Though I wasn't in Brazil in the early 1990's I believe inflation by then had decreased to much lower levels. One other significant (and well-studied) fact about Brazilian inflation is the existence of monetary correction for some financial assets. I would check Instituto Brasilerio de Economia (part of Fundacao Getulio Vargas -- perhaps too far to the right for my taste, that may have changed) or Instituto Brasileiro de Georgrafia e Estatistica. (IBGE) CSTAR 04:17, 13 Jul 2004 (UTC)
- Yes I correct myself, inflation in the early 90's was also at 3000+ percent p/annum rate. (although high levels did also exist in the late 70's early 80's. That's one reason why I left!) CSTAR 04:41, 13 Jul 2004 (UTC)
Isn't moving the decimal place correctly referred to as revaluation? I've always understood devaluation to refer to a deliberate governmental inflation in order to take wealth from the general public and/or induce foreign investment. This modification would also involve adjusting the devaluation entry too. Chris Rodgers 18:57, 14 Jul 2004 (UTC)
This is debatable....
- The widespread use of fiat money created the increased possibility of hyperinflation. (see seigniorage)
One could argue that fiat money is a consequence of hyperinflation and not a cause of it.
Can you name one example of hyperinflation in progress where the monetary authority switched to a fiat currency basis? There are examples of inflation pressuring the switch, but not to my knowledge hyperinflation. Stirling Newberry 00:24, 16 Jul 2004 (UTC)
The caption for the 500,000,000,000 dinar note reads "the largest nominal value ever officially printed", yet lower down the article says "The largest denomination banknote ever officially issued for circulation was in 1946 by the Hungarian National Bank for the amount of 100 Million Billion Pengo (100,000,000,000,000,000,000)." Should the caption be corrected, or am I not understanding "nominal value"? --Earle Martin 11:53, 23 Jul 2004 (UTC)
The caption actually reads "the largest nominal value ever officially printed in Serbia" (emphasis added). Brianjd
what country's currency is the ake? Jdevine 15:43, 3 Sep 2004 (UTC)
Ottoman empire - see "The Great Debasement" Sevket Pamuk, A Monetary History of the Ottoman Empire. Yale 2000
why not put that info in the entry? Jdevine 19:43, 3 Sep 2004 (UTC)
| Contents |
Mississippi Scheme
An example of this is the "South Sea Bubble" under John Law.
John Law was responsible for the Mississippi Scheme.
I'd like to clarify my concerns with the current version of the article, following the reversion of some of my edits by Stirling Newberry.
My general concern is that it doesn't accurately describe the debate about various causes of hyperinflation. The article seems to me to be describing a stereotyped view of each side of the debate, which exagerrates the amount of controversy and obscures the amount of common ground. "Monetary" and "Crisis of confidence" explanations of hyperinflation are describes as if they are two completely different competing theories, held by different schools of thought ("monetarists" and "neo-liberals").
I think that the overwhelming majority of economists would see both monetary and confidence factors as being important as the initial 'root cause' of hyperinflation, with the importance varying from case to case. A lot of the economics is very uncontroversial. For example:
- It's totally uncontroversial that a massive increase in the money supply will cause hyperinflation. Virtually any economist will agree that a big increase in the money supply is a possible trigger for hyperinflation, even if they don't believe it's the only one. To say imply that neo-liberal economists don't believe that some hyperinflations are initially triggered by monetary expansion is to caricature their position.
- It's totally uncontroversial that loss of confidence in the monetary system has a big role in hyperinflation. To imply that monetarists don't see a role for reestablishing confidence in the currency - that just 'stopping the printing presses' is enough - is just misleading. Monetarists talk about ways of establishing confidence all the time.
I would be interested to hear from Stirling what specific inaccuracies were in my edits, and why he deleted the statement "The two models are closely related, and often economists may explain hyperinflation as being due to a combination of both effects."
Enchanter 20:44, Sep 30, 2004 (UTC)
Characteristics of hyperinflation
International Accounting Standard 29 describes four signs that an economy may be in hyperinflation:
But there are five items under that sentence. Brianjd
Hyperinflation under commodity money
Governments in a commodity or specie money system can
- Confiscate assets.
- Invade another country and "liberate" the money stock of the other country - also known as "pillage".
- Change the basis of the unit of account or "peg".
- Emit notes of credit - which while not legal tender, can be required to do business with the government.
- Borrow.
- Debase.
- Shave.
- Grant patents and sell stock.
Removed Cleanup tag
A naked cleanup tag without explanation is not particularly helpful. Please do not add naked clean up tags - particularly with no edit summary - without listing in the talk section why the article needs clean up. Stirling Newberry 04:39, 11 Jan 2005 (UTC)
