Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
  • #20181

    How is hyperinflation solved? Since hyperinflation is caused by a rapid increase in the money supply, what would happen if the government just mandated and implemented the destruction of much of the money supply?


    I recommend posting this question in our Austrian Economics forum. Faculty will be more likely to see it there.


    I wondered about something to that effect with all the reserves held at the Federal Reserve–whose to say they can’t just go up in smoke when things start to get out of control. The way I posed it was credibly shot down because I was confusing open-market operations with borrowing from the Fed. But still, as long as a couple trillion dollars or more are held in deposits at the Fed, that’s a lot of potential circulation to pull out of the economy by fiat. I still have to listen to the Q and A–going to try to get to that today.

Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.