In instances such as Zimbabwe or Argentina, where hyperinflation spirals out of control, how do people feed themselves and pay for the bare necessities? Does the government step in and provide the support needed to prevent mass starvation?
In: Economics
People use different currencies, whether it’s a foreign stable currency or goods. So everything ends up in a secondary “illegal” economy that isn’t highly persecuted because everybody is using it. If a government goes into a hyperinflation spiral, it’s because things are already out of control, and they lack the power to provide support. Usually, they will try to crack down on the growing black market.
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