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Q: Why Hyperinflation are extremely rare in countries whose central banks are independent of the rest of the government?
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What is the biggest cause of hyperinflation?

Hyperinflation is when inflation is extremely high and increasing at a rapid pace. The primary reason for the emergence of Hyperinflation in an economy is a huge disparity existing between demand and supply of a specific type of money. Such disparities normally arise when very little confidence is left on that particular currency, parallel to a bank run. Ref: alpari.com/en/beginner/glossary/


Define the term of Hyper inflation?

Hyperinflation is a rapid rise in the general price level. When inflation occurs, sometimes people anticipate further inflation. They then spend all their savings "now" to beat the anticipated price increases; after all, money in the bank during inflationary periods only can depreciate in value. Businesses buy more capital goods. Workers get paid higher and higher wages. These actions will further intensify the pressure on prices. Inflation drives inflation further; it eventually may cause economic collapse.


Why are monopolies illegal?

They are not. Although some like for example con Edison are but, they are a "natural / limited monopoly" in other words they are extremely regulated by the government.


What is Phim Yen Vi known for?

Phim Yen Vi is known for her appearances in adult films in Vietnam. The actress has appeared in multiple films there that have been extremely popular and also in other countries.


Disadvantages of export?

Exportation is increasing the C02 and increasing the risk of deceases which will travel from country to country with the products. Many of the products we offer to other countries are turned down because it does not look 'perfect' so will stop customers buying the product. It is extremely time consuming to export products and heftily expensive as the petrol for cargo ships, planes, etc is increasing yearly. Also, if the product falls to complete the Government rules and requirements but still is transported to another country it causes the receiving country to fine the other country. This can effect the economy of the 'victimised country' since the other government would fine extremely high. If journalists found out, the publicity of the fined country would effect many things and possibly including tourism since tourists would class the country as unreliable and illegal in certain matters.

Related questions

What is the range of hyper inflation?

Hyperinflation is an extremely rapid or out of control inflation and there is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.


What is the biggest cause of hyperinflation?

Hyperinflation is when inflation is extremely high and increasing at a rapid pace. The primary reason for the emergence of Hyperinflation in an economy is a huge disparity existing between demand and supply of a specific type of money. Such disparities normally arise when very little confidence is left on that particular currency, parallel to a bank run. Ref: alpari.com/en/beginner/glossary/


Which of the following is not an element of civilization A extremely simple forms of government B occupational specialization C agriculture D writing?

Extremely simple forms of government.


How is Russia and America different?

The government is extremely different!


Are extremely simple forms of government an element of civilization?

No.


Was the Nazis government poorly organized?

It was extremely well organized.


Why is Aristolochic acid banned in most countries?

because it is extremely harmful.


What type of weather is in frigid zone countries?

Extremely cold weather.


Are the people of India independent in the real sense?

The answer depends on what is meant by "in the real sense". In some respects, nobody in any country is totally independent - there are just different degrees of relative independent. You may think a country is politically independent but it will still have to abide by its international commitments. Also, it is extremely unlikely to be economically independent.


How was the world when there was no countries yet?

Pretty sure even cave men had their own countries. Humans have always been extremely territorial.


Why developing countries are very vulnerable to earthquake damage?

They are extremely vulnerable compared to developed countries because they do not have the money or resources which developed countries can access within days.


How did president Nicolae Ceauşescu respond to Romania's fight for independence?

Nicolae Ceauşescu was a strong fighter for Romania independence.- by a foreign politics extremely independent and courageous- building a complex economic-industry system in Romania- by a foreign politics extremely independent and courageous- building a complex economic-industry system in Romania