Henry J on Nostr: Daniel Krawisz on hyperinflation: “in a hyperinflation, the government expands the ...
Daniel Krawisz on hyperinflation:
“in a hyperinflation, the government expands the money supply to outpace people's inflation expectations… As the government forms a habit of inflating the money supply, its people form a habit of anticipating rising prices. This prevents the government from gaining as much each time it inflates. Thus, to get the same kick, the government must inflate more. The money loses value once people anticipate such heavy inflation that they can't spend it fast enough and it no longer functions as a currency.”
https://nakamotoinstitute.org/mempool/hyperbitcoinization/
“in a hyperinflation, the government expands the money supply to outpace people's inflation expectations… As the government forms a habit of inflating the money supply, its people form a habit of anticipating rising prices. This prevents the government from gaining as much each time it inflates. Thus, to get the same kick, the government must inflate more. The money loses value once people anticipate such heavy inflation that they can't spend it fast enough and it no longer functions as a currency.”
https://nakamotoinstitute.org/mempool/hyperbitcoinization/