The Economist explains

The roots of hyperinflation

Fifty-seven cases of runaway inflation have been documented. They have common patterns

By J.O’S.

IN a country where the annual inflation rate is in four figures, the previous month can seem like a golden age. Venezuela’s currency, the bolívar, has lost 99.9% of its value in a short time. It is hard to fathom how a government can get its economic policy so wrong when the effects of hyperinflation are so severe. What are its causes?

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