Why can’t hyperinflation be fixed by creating a new currency? or just stop printing?
In: 101
By the time hyperinflation has been reached, faith in the currency and the government’s ability to manage a currency is already gone. Lenders will be charging such high premiums that things become unaffordable without printing even more money – or else letting the entire economy crash.
And printing a new currency is literally an admission of them failing to handle a currency. Why would people trust them with a new one? This is why countries that go into hyperinflation tend instead to have to resort to adopting another country’s currency (and so adhering to the terms and conditions laid out by that foreign country).
That’s why countries should ideally not get into hyperinflation in the first place.
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