Runaway inflation is not a monetary phenomenon, the claims of monetarists notwithstanding. It is an interest-rate phenomenon predicated on the linkage. The price level and the rate of interest resonate with the oscillating money-flows between the bond and the commodity markets. This economic resonance, under the concerted pounding by speculators, ultimately reaches the state of runaway vibration. When the fragile confidence in the value of irredeemable currency snaps, commodities are bought up and all bids for bonds are withdrawn. The rate of interest, together with the price level, reach astronomical heights.
bbankie bblinkie bbendsover thursday
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