Macroview: Is Hyperinflation Really A Threat?

The comments below are an edited and abridged synopsis of an article by Lance Roberts

While the hyperinflation discussion sways between a broken financial system and capitalism’s failure, it is on the horizon. The measure of money in the system (M2) is skyrocketing, which certainly supports this concern. Now, with the Biden administration adding another $1.9 trillion to the US economy, those concerns are up for discussion.

Macroview: Is Hyperinflation Really A Threat? | BullionBuzz | Nick's Top Six
Economic bubble danger and financial burst or as a Stock market business speculation with a businessman short seller concept and overvalued inflated economy with 3D render elements.

In a recent Bloomberg interview, economist Larry Summers said: “There is a chance that macroeconomic stimulus on a scale closer to World War II levels will set off inflationary pressures of a kind not seen in a generation. I worry that containing an inflationary outbreak without triggering a recession could be even more difficult now than in the past.”

Are those concerns valid? Should we worry about a hyperinflationary surge like we saw in the late 1970s? Or are the deflationary pressures on the economy still present?

Up for discussion: The difference between inflation and hyperinflation; the velocity of money; wage inflation; commodity prices; the high inflation index; and conclusion.

Leave a Reply

Your email address will not be published.