It was curious to note that commentators on this site yesterday were referring to the risk of hyperinflation from MMT, suggesting that 56 historical cases of hyperinflation (basically, inflation of more than 50% a month) had been identified in a recent report.
The report in question was identified by another commentator, John D. It came from the Cato Institute, which is a notorious US right wing think tank, But let's take it at face value. What it says is that hyperinflation only happens in some very particular circumstances:
Hyperinflation is an economic malady that arises under extreme conditions: war, political mismanagement, and the transition from a command to market-based economy — to name a few.
I think we can safely rule out MMT as creating any such risk then.
As such will all those referring to Zimbabwe and the Weimar Republic kindly take note and presume henceforth that they will be deleted? Normal levels of government spending intended solely to create conditions of full employment have not, and never will of themselves, create hyperinflation. It's a suggestion not even worth debating.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
And if you would like to support this blog you can, here: