Corinne Nita
1 min readJan 10, 2022

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Germany's economic punishment came back to bite everyone. Yikes. Hyperinflation occurs when money can't circulate because there aren't enough resources to absorb the currency. Usually, sanctions cause hyperinflation by reducing an economy's diversity and size.

In the US, EU, Australia, UK, Japan, and other countries, central banks digitally pumped billions into the economies throughout the pandemic. During the Great Depression, FDR unofficially decoupled the dollar from gold to fund social programs and WWII. The US would never be able to afford military spending, and agricultural and fossil fuel subsidies on tax revenue alone. It's not waiting for the public's taxes to fund its expenditures - that's for sure.

Nations with strong, diverse economies have the capacity to raise the funds to invest in their needs, and they have been for decades (especially Japan). As long as there are goods and services to absorb the currencies, hyperinflation won't occur.

Keynesian economists' principles state cost-pull and demand-push (supply and demand) cause inflation. While Monetarists claim the quantity theory of money (money supply) leads to inflation. Historically, only one economic school of thought has been correct.

I'm not worried about the supply of money but I am concerned about the central banks' monetary distribution process. The financial institutions receiving the money intentionally and artificially raise prices, and governments aren't doing anything to control it.

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Corinne Nita
Corinne Nita

Written by Corinne Nita

We need the social with the science to call it economics.

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