they weren't pumping anything, it's just the velocity of money that went to the roof, forcing the government to issue new notes for the rapid inflation. Inflation happened because their GDP was shrinking at an incredible pace. When it does, no solution will stop inflation. If you need a reason for the shrinking of their GDP (production), look no further than the illegal seizure of white farm lands by the militia and the unskilled farmers. They couldn't replace the production level, and that's when things started to go wrong. The rest just followed. It's not different than Mao or Stalin Communism when they seized all the means of production, from farmers to factories, and replace everyone with unskilled labor. Eventually, your economy collapse.Originally Posted by Panda
Inflation is natural and acceptable when it's reasonable (less than 3%) and to be expected. It's actually an incentive for a strong rate of growth.Originally Posted by Panda