Causes and Impacts of Hyperinflation in Developing Countries (Term Paper Sample)

Hyperinflation in Developing Countries
Student’s Name
Institutional Affiliation
Course Number and Name
Professor’s Name
Due Date
Hyperinflation in Developing Countries
For decades, the majority of developing countries have been plagued by hyperinflation. States in the developed world have experienced extremely high inflation rates during the post-World War II period. All have made significant efforts to control their inflation rates using various measures of competence. Historically, the ultimate goal has been to keep inflation manageable. However, a few countries have implemented policies to eliminate inflation through price stability in recent years. According to Ohnsorge (2019), this has been a contentious endeavor, demonstrating that there is still no widely accepted solution to the inflation problem. As a result, no one can agree on what is causing inflation. The monetarist view that inflation is primarily driven by excessive money creation persists. Similarly, the concept that inflation originates in the labor market is false. Regardless, hyperinflation occurs in developing countries for various reasons, such as inflation as an economic tax, money creation, and lower productivity.
Governments dramatically loosen monetary policy to devalue debts and reduce tax revenue. Because money is expected to