The Economic Disaster You Need Not Fear

By Greg Scoblete
September 04, 2012

Hyper-inflation isn't caused by technocrats

There's been awful lot of bad economic news of late from all corners of the globe, but I'm here with some good news (kind of). According to a paper from Steve Hanke and Nicholas Krus detailing every global instance of hyper-inflation, there's been no documented case of hyper-inflation being spurred by irresponsible central banks. Felix Salmon breaks it down:

'The real value of this paper is its exhaustive nature. By looking down the list you can see what isnâ??t there â?? and, strikingly, what you donâ??t see are any instances of central banks gone mad in otherwise-productive economies. As Cullen Roche says, hyperinflation is caused by many things, such as losing a war, or regime collapse, or a massive drop in domestic production. But one thing is clear: itâ??s not caused by technocrats going mad or bad.'

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