Why can’t hyperinflation be fixed by creating a new currency? or just stop printing?

508 views

Why can’t hyperinflation be fixed by creating a new currency? or just stop printing?

In: 101

20 Answers

Anonymous 0 Comments

Inflation is the difference between how much money is available versus the amount of goods and services the people who use it have. If you have a lot of money but nothing to buy/sell you have inflation, if you have lots of goods but little money you have deflation. When you change the currency you are trying to rebalance the money supply so that the stuff the money represents is appropriately represented.

You are viewing 1 out of 20 answers, click here to view all answers.