Will We Have Hyperinflation In America?
This article was written in 2010 after the 2008 Great Recession kicked off. It was my response to commentators who were raising the specter of high inflation and hyperinflation. Instead of inflation we got deflation as many of the boom phase investments were substantially devalued. These malinvestments resulted in a serious contraction of economic activity and lending, and much of the money printing stimulus (euphemistically called “Quantitative Easing”) lay in Excess Reserve accounts at the Fed. Looking back, it’s a good explanation of hyperinflation and is applicable to today’s economy. (more…)