Inflationary tendencies and even hyperinflation in many Latin American countries have been exacerbated by the tendency of governments to

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Printing money to finance policies to stimulate the economy leads to an increase in the money supply which often results in higher levels of inflation. This has been a common practice in many Latin American countries, exacerbating inflation and even leading to hyperinflation in some cases. Heavy taxation, heavy regulation, protectionism, and industrial policies can also contribute to inflationary tendencies, but printing money to finance policies is the most significant factor in this context.

Inflationary Tendencies and Even Hyperinflation in Many Latin American Countries