As it turns out, one can accurately measure hyperinflations, but one can't forecast their course or duration.
At present, Venezuela is the only country in the world that is suffering from the ravages of hyperinflation. Alas, the word "hyperinflation" is thrown around carelessly and misused frequently in the financial press.
The aid shipments have been meant in part to dramatize the hyperinflation
and shortages of food and medicine that are gripping Venezuela"
But it's striking how the precarious economics of socialism, including hyperinflations, are tied to petroleum.
By the end of its hyperinflation, Zimbabwe was printing banknotes that ran into the trillions.
In the latter, moderate inflations are distinguished from hyperinflations
with most of the discussion focused on hyperinflation
"The reality is that nearly all hyperinflations
stem from a collapse of foreign exchange as a result of having to pay debt service.
Since the hurdle rate to qualify for hyperinflation
is 50% per month, Iran registered what appears to be the start of the world's 58th hyperinflation
first became a topic of academic and political discussion after the end of the First World War (and the five great hyperinflations
that followed it in Germany, Austria, Poland, Hungary and the Soviet Union), the discussion centred on the question of whether hyperinflation
was caused by monetary expansion, or by an imbalance in the balance of payments (Fischer et al., 2002).
This article reexamines the importance of relative price fluctuations as an explanatory variable for money demand during hyperinflations
. The theoretical model derived indicates that there are nonlinear interactive terms in relative prices and anticipated inflation that may also impact money demand in a more general setting.
(17) occurred in Eastern Europe and Central Asia, with Latin America accounting for 5 and Western Europe for 4.
Latin America has afforded several opportunities to investigate how hyperinflation
affects money demand.