Wednesday, July 26, 2023

Hyperinflation, inflation, and shrinkflation

Since the end of World War II, most major Western countries had hyperinflation pretty much under control.

Inflation still comes and goes. Often times due to bad government policies like the extremely low interest rate policies (cheap money reducing price sensitivity and chasing wasteful projects/investments etc.) since about early 2000s and the excessive government spending for many years that significantly contributed to the current inflation.

How was hyperinflation or a more severe inflation avoided this time? Think of e.g. shrinkflation or how businesses adopt to inflation!

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