Should we call this reverse monetarism?
The “answer” on the July 1 episode of Jeopardy was:
In the 1940s, the country’s Magyar Nemzeti Bank issued 10 billion pengo notes to combat inflation.
The contestants were asked to answer “What is Hungary?”, to which one person replied:
The problem, of course, is that you can’t fight inflation by adding huge amounts to the money supply – you create more inflation. The people who came up with this idea are clearly clever, and I don’t think they know much about economics, but how can they possibly think that printing more money will “fight” inflation rather than make it worse? I don’t understand their mental model.
One of my favorite articles on hyperinflation is, naturally, an article I commissioned. A concise encyclopedia of economics.
My name is Michael K. Salemi.HyperinflationNotice in the third paragraph that he discusses the Hungarian inflation mentioned by Jeopardy, which was significantly more extreme than the German hyperinflation of 1921-1923.
