America is actually very different from Zimbabwe.

Look, I wouldnt be surprised at all if American financial mismanagement led the country to behave irresponsibly, or to end up with a higher rate of inflation. It could inflate, or inflate and repress, or even partially default on statutory obligations if not on bond payments. I dont know that I see inflation and financial repression as the most probable route out of high debt which, in my view, will instead consist mostly of mild austerity and growth. But its none of it out of the question. By hyperinflation is a different animal, and one which implies a complete breakdown in the political and social order. America is actually very different from Zimbabwe. Yes, America occasionally budgets recklessly. But it has a very deep, very broad, and very strong civil society, buttressed by levels upon levels of private and public, formal and informal institutions.

via Hyperinflation: Fearing the worst | The Economist.

 

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