Money and Finance
- More Iran Inflation Articles
Link to articles: Hyperinflation Hits Iran; Monthly 70% Inflation Rate; Reflections on Economic Warfare Iran's People Suffer as Oil Income Protects the Government from Hyperinflation Meat becomes a Luxury Good in Iran as Inflation continues ...
- Hugh Hendry's Latest Thoughts
Found via Zero Hedge.The high CPI numbers being reported in the UK and other Western nations are “meaningless”, Hendry says, because in today’s economic environment, it does not translate into wage growth. (In the 1970’s, it did). Because wage...
- John Mauldin: Inflation And Hyperinflation
I have had a lot of questions about my thoughts on inflation and hyperinflation of late, especially in the new “Ask Mauldin” section on www.johnmauldin.com. Unfortunately, the answer is not short and simple. The good news is that my new book has an...
- Hussman Weekly Market Comment: Sequential Signals
On the subject of inflation, I should emphasize that while I expect inflation pressures to be contained for several years, the impact of massive deficit spending should not be disregarded simply because Japan, with an enormously high savings rate, was...
- Wcam: How Inflation Became The Good Guy
Inflation has been an all-purpose bogeyman since the 1970s, but a small amount of inflation comes with a healthy, growing economy. The Federal Reserve focuses on managing inflation, not preventing it. We have written often that we feel the government...
Money and Finance
Believe the hype in hyperinflation - By Tim Harford
First, hyperinflation is a phenomenon of the modern era: with a single exception, every hyperinflation has occurred since the end of the first world war. The outlier is revolutionary France, where monthly inflation passed 300 per cent in the summer of 1796.
Second, three-quarters of these hyperinflations – 43 out of 56 – occurred in one of three clear historical clusters. The first cluster is central European states after the first world war. It provides the most famous hyperinflation in history: Weimar Germany. The second cluster is during or immediately after the second world war, and it includes history’s worst: Hungary in 1946. Those inflation rates defy comprehension – 41,900,000,000,000,000 per cent a month, compounded, is (I believe) an annual inflation rate with 178 digits. It makes more sense as 207 per cent a day.
The third cluster is that of Eastern bloc countries as the Soviet Union disintegrated, and it comprises over half of all the 20th century’s hyperinflations. These are all examples of hyperinflation going hand in hand with an extremely stressed political and social system. Most of the remaining examples, from Zimbabwe to late revolutionary France, exhibit that same stress.
There’s a lesson here: regardless of the fears of some US Republicans and German hard-money fans, hyperinflation is not produced by central bankers. It is the result of a total failure of the political system.
There are a few people who are simultaneously buying gold in expectation of hyperinflation in western economies and stockpiling bullets in anticipation of a calamity for western civilisation. I will give the survivalists this much credit: the scenarios are consistent. But calamity arrives first, and hyperinflation follows.
- More Iran Inflation Articles
Link to articles: Hyperinflation Hits Iran; Monthly 70% Inflation Rate; Reflections on Economic Warfare Iran's People Suffer as Oil Income Protects the Government from Hyperinflation Meat becomes a Luxury Good in Iran as Inflation continues ...
- Hugh Hendry's Latest Thoughts
Found via Zero Hedge.The high CPI numbers being reported in the UK and other Western nations are “meaningless”, Hendry says, because in today’s economic environment, it does not translate into wage growth. (In the 1970’s, it did). Because wage...
- John Mauldin: Inflation And Hyperinflation
I have had a lot of questions about my thoughts on inflation and hyperinflation of late, especially in the new “Ask Mauldin” section on www.johnmauldin.com. Unfortunately, the answer is not short and simple. The good news is that my new book has an...
- Hussman Weekly Market Comment: Sequential Signals
On the subject of inflation, I should emphasize that while I expect inflation pressures to be contained for several years, the impact of massive deficit spending should not be disregarded simply because Japan, with an enormously high savings rate, was...
- Wcam: How Inflation Became The Good Guy
Inflation has been an all-purpose bogeyman since the 1970s, but a small amount of inflation comes with a healthy, growing economy. The Federal Reserve focuses on managing inflation, not preventing it. We have written often that we feel the government...