passive, the term 'hyperinflation' springs to mind... not only with our current govnut....but worldwide govnuts... they are printing money, and trying to get people to spend, as in labor's cash handouts this month...at the same time, energy costs have gone sky high, in fact most costs of goods n services is in pigs might fly territory....at the same time retailers cannot get sales...govt bonds are unpopular... there is a stalemate..... the govnut keeps telling everyone we are in la la land...and no one believes them......glen stevens tells us the glass is half full...but he is simply a puppet for swanny...
people have been bunkering down, saving not spending....and there is no window in sight to open, not yet...
I would say our costs for electricity, and fuel, are at hyperinflation rates now...
a brief explanation follows
Hyperinflation occurs when there is a continuing (and often accelerating) rapid increase in the amount of money that is not supported by a corresponding growth in the output of goods and services. This results in an imbalance between the supply and demand for the money (including currency and bank deposits), causing rapid inflation. Very high inflation rates can result in a loss of confidence in the currency, similar to a bank run. Usually, the excessive money supply growth is results from the government being either unable or unwilling to fully finance the government budget through taxation or borrowing, and instead it finances the government budget deficit through the printing of money.[6]
As it allows a government to devalue their spending and displace (or avoid) a tax increase, governments have sometimes resorted to excessively loose monetary policy to meet their expenses. Inflation is effectively a regressive consumption tax,[7] but less overt than levied taxes and therefore harder to understand by ordinary citizens. Inflation can obscure quantitative assessments of the true cost of living, as published price indices only look at data in retrospect, so may increase only months or years later. Monetary inflation can become hyperinflation if monetary authorities fail to fund increasing government expenses from taxes, government debt, cost cutting, or by other means, because either during the time between recording or levying taxable transactions and collecting the taxes due, the value of the taxes collected falls in real value to a small fraction of the original taxes receivable; or government debt issues fail to find buyers except at very deep discounts; or a combination of the above.
Theories of hyperinflation generally look for a relationship between seigniorage and the inflation tax. In both Cagan's model and the neo-classical models, a tipping point occurs when the increase in money supply or the drop in the monetary base makes it impossible for a government to improve its financial position. Thus when fiat money is printed, government obligations that are not denominated in money increase in cost by more than the value of the money created.
From this, it might be wondered why any rational government would engage in actions that cause or continue hyperinflation. One reason for such actions is that often the alternative to hyperinflation is either depression or military defeat. The root cause is a matter of more dispute. In both classical economics and monetarism, it is always the result of the monetary authority irresponsibly borrowing money to pay all its expenses. These models focus on the unrestrained seigniorage of the monetary authority, and the gains from the inflation tax.
this is as good an explanation as any...for most of our readers here
