IDE1404

Hungarian central bankers warned that printing money to pay the bills would not end well

Prices doubled every: 25 hours

hyperinflation was preceded by a long, grinding decline in economic output

outsized government budget deficits.

government to resort to monetization of its fiscal deficit.

trade among regions of the former Yugoslavia collapsed, and industrial output followed

In an attempt to monetize this and other deficits, the central bank lost control of money creation and caused hyperinflation.

Germany was required to pay large reparations to the victors to make up for the costs incurred by the winning side.

monetization at the central bank to pay the aforementioned expenditures and finance the rest of its deficit.

leading to runaway hyperinflation. (this was preceded by abandonment of the silver standard in China in 1935).

populist economic reforms that only served to weaken the economy and shut Peru out of international credit markets. Faced with a lack of access to credit and deteriorating economic conditions, sustained high inflation became hyperinflation in Peru.

The government then issued assignats to the public – notes that essentially amounted to a land-backed currency – which were supposed to be redeemable for the land by note-holders at a future date. However, the government ended up issuing way too many notes in an attempt to close the deficit, devaluing the assignats and leading to runaway hyperinflation.

expansionary fiscal policy and foreign borrowing to stimulate domestic demand.