Inflation

Duck Tales

Previously, we look at the Worst Hyperinflations in World History. Recently, I came across with a nice cartoons about hyperinflation from Duck Tales episode called Dough Ray Me.

This is the short synopsis about this episode.

Dough Ray Me, was the 82nd episode of Duck tales. It was first aired on the 3rd November 1989.

In this episode, the inventor Gyro creates a multiphonic duplicator. This device is capable of making exact copies of any objects. Huey, Duey and Louie play with the device and later on start duplicating money. Things go terribly wrong when the duplicated money begins to spontaneously duplicate on its own. Duckburg is quickly over run with duplicated money, causing prices to skyrocket or in other word hyperinflation.

What happen when hyperinflation occur and how do they solve the problem?

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inflation

Hyperinflation is a condition when a country experience very high inflation rate or “out of control”. The minimum inflation rate per month in order to quality as hyperinflation is 50% or equivalent to 12,875% per year. During hyperinflation, prices increase rapidly and out of control as the currency loses its value.

Hyperinflation occurs when there is a rapid increase in the amount of money supply which is not corresponding to the growth in the output of goods and services. This results in imbalance between the supply and demand for the money. Hyperinflation is generally associated with paper money because this can easily be used to increase the money supply.

Hyperinflation effectively wipes out the purchasing power of private and public savings. It will distorts the economy & causes the monetary base, whether specie or hard currency, to flee the country. In the end it makes the afflicted area anathema to investment.

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