Most hyperinflations end with _____ reforms that eliminate the need for _____.
A) monetary; taxes
B) monetary; currency
C) fiscal; seigniorage
D) fiscal; currency

Question

Quizplus · Accepted Answer

Most hyperinflations end with fiscal reforms that eliminate the need for seigniorage. Seigniorage is the profit made by the government by issuing currency, especially in situations where the cost of printing money is less than its value. Hyperinflation often leads governments to rely excessively on seigniorage as a source of revenue, which exacerbates the problem. Fiscal reforms can help stabilize the economy by reducing the reliance on this practice.

Most Hyperinflations End with _____ Reforms That Eliminate the Need