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<oembed><version>1.0</version><provider_name>naked capitalism</provider_name><provider_url>https://www.nakedcapitalism.com</provider_url><author_name>Edward Harrison</author_name><author_url>https://www.nakedcapitalism.com/author/edward-harrison</author_url><title>What are the preconditions for Hyperinflation? | naked capitalism</title><type>rich</type><width>600</width><height>338</height><html>&lt;blockquote class="wp-embedded-content" data-secret="8RT2T9wYaU"&gt;&lt;a href="https://www.nakedcapitalism.com/2011/04/what-are-the-preconditions-for-hyperinflation.html"&gt;What are the preconditions for Hyperinflation?&lt;/a&gt;&lt;/blockquote&gt;&lt;iframe sandbox="allow-scripts" security="restricted" src="https://www.nakedcapitalism.com/2011/04/what-are-the-preconditions-for-hyperinflation.html/embed#?secret=8RT2T9wYaU" width="600" height="338" title="&#x201C;What are the preconditions for Hyperinflation?&#x201D; &#x2014; naked capitalism" data-secret="8RT2T9wYaU" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"&gt;&lt;/iframe&gt;&lt;script type="text/javascript"&gt;
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</html><description>People arguing that hyperinflation is around the corner usually are pushing this view because of an ideological bias against fiat money. This is a bias I share because I believe that fiat money allows excessive money creation that winds up as a credit super bubble - and our experience over the past 40 years demonstrates this. However, I don't let this bias get in the way of my analysis of the economics of the situation. I have a better understanding of the fiat money system because I am not anchored in a gold-standard mentality when looking at the constraints on government in the fiat money system and the types of events that lead to hyperinflation. The hyperinflation talk is a gimmick used to push a particular ideological viewpoint. While I share that viewpoint and don't like fiat money, I am not a fear monger, so you won't see pushing an ideological agenda which has the economics wrong.  Here are a few bullet points that are salient for understanding fiat money and hyperinflation.</description></oembed>

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