Jim:

> Perhaps it would best to think about counterexamples. A few years ago,
> Israel had what many called "hyperinflation." Was it due to an effort
> (conscious or unconscious) to get out of debts denominated in
> non-Israeli currency? how about Nationalist China after WW2?


I am not among that "many" who called what Israel had in the 1970s and
1980s "hyperinflation". It had been an inflation rate of around 80-90%
or some such thing, if recall correctly. High inflation? Yes.
Hyperinflation? I don't think so.

In the 1980s and 1990s Turkey also had inflation rates to the north of
100%. Clearly, what we had was high inflation. Was that
hyperinflation? I don't think so. Was non-domestic currency
denominated foreign debt involved in that high inflation in Turkey?
Yes, I know it well. I had lived through that period.

I don't know what happened to the Nationalist China after the WWII.
Most likely, they were financing the civil war by borrowing from the
imperialists, but I don't know what exactly was going on there and
then.

Then again, if hyperinflation is defined as "very high" inflation,
then we are in trouble: what is "very high" for me might not be "very
high" for you and vice versa.

Best,
Sabri
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