Economy, asked by hridayrajahuj20, 8 months ago

Hyperinflation are extremely rare in countries whose central banks are independent of the rest of the government do you agree give reason

Answers

Answered by skyfall63
0

Yes, Hyperinflations is unlikely to occur if the central bank is independent of the government.

Explanation:

  • Hyperinflation describes a general rise in prices in an economy as high, unsustainable and out-of-control
  • Hyperinflations generally arise when govts use the printing of money to finance a lot of their expenditures. This is highly improbable if the central bank who controls the money supply is independent of the govt
  • Though hyperinflation is a rare incidence for developed economies, it has taken place several times all thru history in nations like Germany,  China, Russia, Argentina, & Hungary.

To know more

What is hyperinflation?Why did it occur in germany in 1923 - Brainly.in

https://brainly.in/question/7738094

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