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"Shock Therapy" Is One Means by Which Hyperinflation Can Be

Question 85

Essay

"Shock therapy" is one means by which hyperinflation can be stopped. In fact Bolivia is an example of a country that used this method. It simply stopped printing money all at once. Why do you suppose this was successful for Bolivia but when other countries tried to stop it by only gradually reducing the printing of money it did not work?

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The reason is probably that you have to ...

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