Author Topic: Land of the Rising Zeroes  (Read 1416 times)

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Offline Harald

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    • Monetary History & Numismatic Linguistics
Land of the Rising Zeroes
« on: October 11, 2012, 09:27:13 PM »
An interesting paper which lists 56 periods of "hyperinflation":
http://www.cato.org/publications/working-paper/world-hyperinflations

The threshold value of 50% rise per month (means a 130-folding of the prices per year) selects only
the most pathological cases where monetary economy has collapsed already (together with the most
of the public order, as the authors point out). I wonder if one would be able to identify a maximum
inflation rate with which the economy can function in a fairly stable manner. Probably not more than
20-25% per year. Everything higher could be called "super" or "hyper" ...

cheers
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Harald
http://www.liganda.ch (monetary history & numismatic linguistics)

Offline Figleaf

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Re: Land of the Rising Zeroes
« Reply #1 on: October 14, 2012, 11:12:00 AM »
Nice as an inventory with plenty of "how about that" effects, but quite mechanical (is a period of one month hyperinflation worth mentioning? It depends on the months before and after) and without an attempt to analyse, let alone draw conclusions. The definition of hyperinflation looks random to me, as I suspect that the cut-off value of 50%/month was based on the number of toes the authors have on each foot, rather than anything scientific.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.