jimmysong on Nostr: It's counterintuitive, but the countries undergoing hyperinflation, are often more ...

It's counterintuitive, but the countries undergoing hyperinflation, are often more sound than other countries undergoing normal inflation.

Government, of course, is as fiat as they can be, printing money so they can squeeze out Cantillon benefits, but everyone else adjusts.

Individuals and businesses move to a dollar standard, which in those countries is much harder than their own currency and those on that standard have to create value. They can't just get dollar loans as the risk is too high. Hence, they have to operate from savings and the businesses are a lot more sound and focused on adding value.

For me, this is why Argentina and Lebanon were so pleasant to visit. They avoid as much as possible their governments' debasement and have to operate in a manner that's more legitimate.