Hyper Inflation. Nishant Baxi

it until 1956. A book

      by Phillip Cagan called “The Monetary Dynamics of Hyperinflation” was a huge release that showed people some of the reasons why it happens and to give them an understanding of the process.

      A great deal of what is found

      in this book has been given credible backing by economic specialists. They have studied the foundations of the US dollar and the economy. They don’t argue with what Cagan offered in that very enlightening book.

      However, that doesn’t mean our Nation now has all of the answers of how to prevent high inflation and hyperinflation from occurring. The good news though is that the government and all citizens have access to information that can help them to identify the signs that may indicate that hyperinflation is going to happen.

      It can help use to take action that will change the course of history. Most people don’t think much about economics or the economy of the USA when things are going well. When they turn the other way though people are fun of panic over it and they are ready to place blame.

      Taking responsibility for the economy is a role we all need to step into. Too often citizens feel that their hands are tied and they have to make do with what is going on. Yet they have decisions about buying commodities such as gold, reaching out for credit that is offered, and how they will handle their own finances in tough economic times.

      Chapter 3

      How does Hyperinflation Occur?

      There are many different variables that can occur when it comes to triggering hyperinflation. It is impossible to cover all of them so we will cover those that have the most significant impact on the economy of the USA.

      When the general public decides to retain all of their wealth in forms of non monetary assets it can create problems with cash flow. There are many people that decide to invest in foreign currency such as with ForEx. This can all influence the amount of purchasing power that the USA has as a whole.

      In many instances the general public is looking at money in terms of foreign currency. They may get price quotes in other currencies and that too can be a problem with very high levels of inflation occurring.

      Today’s society in the USA often has a buy it now and pay for it later attitude. Yet the balance

      of credit purchases has to be very closely evaluated. The prices then have to be increased in order to help cover the losses of those that aren’t able to repay the credit that was extended to them.