James Turk’s article Hyperinflation Looms dated April 20, 2010, is based on Quantity Theory
of Money (QTM). It draws an analogy between Weimar Germany of 1923 and the United
States of 2010. Both precepts are invalid. As far as the QTM is concerned, it suffices to point
to the very fact, admitted by Turk, that it is possible to have a shortage of money
simultaneously with the overworking of the printing presses. Hyperinflation is not the same as
the ultimate inflation of the money supply. It is the ultimate depreciation of the currency unit.
The two concepts are far from being the same, QTM notwithstanding.
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