What Causes Hyperinflation? The Main Explanations
It begins in the month inflation first exceeds 50 percent and ends the month before it falls below 50 percent for a year.
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1.How did Cagan define hyperinflation in 1956?
It begins in the month inflation first exceeds 50 percent and ends the month before it falls below 50 percent for a year.
2.Which case seems to be the first meeting Cagan's definition?
The episode followed the revolution, when the state issued paper money called assignats.
3.What is explanation one?
When taxes and borrowing fall short, new money fills the gap; more money chasing the same goods pushes prices up.
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Sources (2)
- Fischer, S., Sahay, R.
- Eigene Rechnung (Python, decimal): 1,5 hoch 12 = 129,746..., 1,5 hoch 6 = 11,390625
Education only. Not financial advice.