Why have some economists described money during a hyperinflation as a hot potato that is quickly passed

Question:

Why have some economists described money during a hyperinflation as a “hot potato” that is quickly passed from one person to another?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

See More Books

Question Posted: Aug 12, 2012 04:14 AM

See More Questions

One problem with hyperinflation is that it reduces economic growth, both through resource misallocation and by reducing saving and investment. a. Why does hyperinflation cause misallocation of...
Why do you suppose that some behavioral economists have criticized a recent decision by the United Kingdom's government to give people more freedom to sell off shares in their pension funds?
Some economists and policymakers have argued that one way to control federal government spending on Medicare is to have a board of experts decide whether new medical technologies are worth their...
Sodium nitrite (NaNO2) reacted with 2-iodooctane to give a mixture of two constitutionally isomeric compounds of molecular formula C8H17NO2 in a combined yield of 88%. Suggest reasonable structures...
What are the reasons for the large variety of casting processes that have been developed over the years?
The FASB requires that financial statements report comprehensive income. Team Debate: Team 1: Defend comprehensive income. Your defense should relate to the con-ceptual framework and to the concept...
As in Example 2.1, camera recycle times might use the sample space $S=R^{+}$, the set of positive real numbers. Let \[ E_{1}=\{x \mid 10 \leq x <12\} \quad \text { and } \quad E_{2}=\{x \mid 11 0\}...
A New Yorker travels to New Jersey to buy a $100 telephone answering machine. The New Jersey Company that sells the machine then deposits the $100 check in its account at a New York bank. How would...
1. Consider a situation where your company you are support technician at large corporation. An employee submits "ticket" reporting that they cannot access the internet. Upon further investigation you...
Steam enters a turbine at 9 MPa, 600C, and 60 m/s and leaves at 20 kPa and 90 m/s with a moisture content of 5 percent. The turbine is not adequately insulated, and it estimated that heat is lost...
Would you be willing to give up your checkbook and instead use an electronic means of payment if it were made available? Why or why not?
In Brazil, a country that underwent a rapid inflation before 1994, many transactions were conducted in dollars rather than in reals, the domestic currency. Why?
(a) What is a population? (b) What is a sample?
According to the Plex website, in their Enterprise Resource Planning Systems cost accounting software modules you can: Set up a flexible, detailed cost structure for each operation and for each...
Capturing labour costs accurately includes capturing time worked on customer orders, jobs or projects. In some cases, this is a reasonably easy task such as in a supervised factory setting. In some...
Derive the expression for maximum fluctuation of energy in a flywheel.
Select a service firm that you believe is successful and has strong brand equity. Conduct a few interviews to find out how consumers experience its service. Use your findings to identify the factors...
Find the condition for maximum power transmission in the belt drive.
Burke, an energy tycoon, hired the accounting firm of Arthur Young and Company to audit several of his operations. The SEC brought an action against Burke for fraud and for failure to meet certain...
The MIT Sloan School of Management is one of the leading business schools in the U.S. The following table contains the tuition data for the masters program in the Sloan School of Management. a. Use...
How Prosperity Depends on Ideas According to economist Paul Romer, ideas and technological discoveries unlock the mystery of growth. He argues that ideas, especially those that can be contained in a...
The president of the United States announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what will happen to interest rates if the...
If the next chair of the Federal Reserve Board has a reputation for advocating an even slower rate of money growth than the current chair, what will happen to interest rates? Discuss the possible...
Assuming that the expectations theory is the correct theory of the term structure, calculate the interest rates in the term structure for maturities of one to five years, and plot the resulting yield...
Popular furniture company, IKEA, has purchased forests in Romania as well as land in Alabama to assist with keeping up with the wood demand necessary to complete customer orders. This was one way...
How does China being Turkey's biggest import partner affect Turkey's exchange rate?
Assignment 4 In this assignment you are provided information on an experiment and you are required to investigate and interpret the output which is provided below. Problem: Consider the...

Why have some economists described money during a hyperinflation as a hot potato that is quickly passed

Question:

Step by Step Answer:

As in the hyperinflation the value of money goes down rapidly Money loses its ...View the full answer

Economics of Money, Banking and Financial Markets

Students also viewed these Banking questions