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RE: Our audience is demanding cryptocurrency explainer videos...

in #steem6 years ago

While I have never personally experienced hyperinflation, I have friends that did in Ukraine. They lived on those packages of soup noodles because they were not able to buy anything else. Normally inflation happens because of actions by the government... the last episode in the United States (and Canada) was because someone had a great idea to strive for full employment. If everyone is employed, companies need to compete to get employees. They raise wages and raise prices to pay for increased wages.
In recent years, the governments have been trying to stimulate the economies by reducing interest rates (now is in negative territory). The economies are stretch so thinly that a slight increase in the interest rate massively negatively affects the economy.
Part of the problem is that the people elected to the government and make decisions about the economy know very little about economics. The current prime minister of Canada (Trudeau) has a bachelor of arts degree in literature. In contrast his father first obtained his Law degree, attended Harvard for a masters in Political Economics, and attended London School of Economics for his doctoral degree. Just because one has the same last name doesn't give the same abilities or knowledge. While getting a bachelor degree in economics (à la current president of USA Donald Trump) is the first step in understanding economics. This doesn't mean that the decisions that are made would be in the best interest of the people in general - instead (eg a tax cut) might be in the interest of the family and friends of the people in power.