Why can’t hyperinflation be fixed by creating a new currency? or just stop printing?
In: 101
Stopping the printer does stop inflation. But to do that you need to cut government spending and in case of hyperinflation its almost all covered from printer. And its not so easy to stop all government spending.
Inflation is a form of taxation, you take the value out of the currency in circulation and shift it into state coffers. Hyperinflation happens when you try to keep taxing when there is nothing more left to take.
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