I would like to ask where i can get comprehensive information on cases of hyperinflation?

Question

I would like to compare the economic situations with what is currently happening in Zimbabwe as well as policy issues to do with curbing inflation. Cases of countries such as Argentina, Yugoslavia, Brazil and Hungary will be most welcome. I want to know what they did correct and what they got wrong and compare with the current econimc policies in Zimbabwe and where the Zimbabwean government is going wrong and can learn from these cases.

Answer 1

Virtually every case of hyperinflation in modern times has the same set of circumstances.

A) A country usually falls into heavy debt and cannot pay it's expenses or loan payments

B) There is a ruler/dictator who has control over the central bank

C) The ruler/dictator decides to pay for expenses by printing money either as instant loans or just funnelled to the treasury

D) The excess curency is immediately devalued against foreign goods, making things more expensuve

E) The government tries to simply print more money to catch up.

Some of the lessons learned from hyperinflation episodes

- Separate the power to print money from a country's rulers. This is why most central banks become independent within the government.

- Measure the central banks official at their ability to keep inflation in check without strangling the economy.

Norway actually made it illegal in their constitution for the central bank to loan money to the government.

More info:

http://en.wikipedia.org/wiki/Hyperinflat...

http://www.econlib.org/LIBRARY/Enc/Hyper...

http://www.rogershermansociety.org/yugos...

http://www.sjsu.edu/faculty/watkins/hype...