Eli5: Is inflation in developing countries like Argentina and Venezuela demand-pull?
In: Economics
Sort of. These hyperinflation scenarios are caused by government currency manipulation. By greatly increasing the money supply, they generate the demand-pull scenario of “too much money chasing too few goods”, but at the same time, the fundamentals of the economy don’t change much. Traditional demand-pull is nice surfing conditions at your local beach. Hyperinflation is a tsunami.
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