Important to know the difference. For more, visit http://burndownthefreakingmission.com
Inflation
is when the economy overheats: It’s when an economy’s
consumables (labor and commodities) are so in-demand because of
economic growth, coupled with an expansionist credit environment,
that the consumables rise in price. This forces all goods and services
to rise in price as well, so that producers can keep up with costs.
It is essentially a demand-driven phenomena.
Hyperinflation
Read more at www.lewrockwell.com
is the loss of faith in the currency. Prices rise in a hyperinflationary
environment just like in an inflationary environment, but they rise
not because people want more money for their labor or for commodities,
but because people are trying to get out of the currency.
It’s not that they want more money – they want less of
the currency: So they will pay anything for a good which is not
the currency.
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