Hyperinflation

Stagflation refers to a state of economic conditions characterized by significant inflation, high unemployment, and slow or no economic growth. The term itself is a combination of “stagnation” and “inflation”. Prior to the 1970s, dominant economic theories posited that inflation would increase when unemployment rates were low and decrease when they were high. This theory was based on the Phillips Curve, an economic model that proposed an inverse relationship between unemployment and inflation. However, the prevalence of stagflation in the 1970s and 1980s surprised economists and forced them to refine…

The concept of central bank digital currencies (CBDCs) has gained traction in recent years, as a number of countries have explored the possibility of issuing digital versions of their national currencies. While the idea of CBDCs may seem attractive, the reality is that it could lead to hyperinflation, which is a sustained increase in the general price level of goods and services in an economy over a period of time. In this article, we will explore the reasons why CBDCs would bring hyperinflation and the potential consequences of such an…