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Wednesday, October 24, 2012

Quote of the day: hyperinflation

hyperinflation is not produced by central bankers. It is the result of a total failure of the political system.”

 

http://www.ft.com/cms/s/2/1ebea080-17f2-11e2-8cbe-00144feabdc0.html?ftcamp=published_links%2Frss%2Farts_columnists_timharford%2Ffeed%2F%2Fproduct#axzz2AGnAxkNr

 

That’s Tim Harford summarizing work by Steve Hanke and Nicholas Krus of Johns Hopkins University, for the Cato Institute.  They studied a large number of instances of hyperinflation, and they all have political failure at the source – NOT government monetary policy.  Worth reading in order to feel better about something in this economic climate.

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