Re:The resource leak bug of our civilization
by thaumasiotes on Monday December 01, 2014 @08:01AM
(#8680710)
> In the past 2 years, the yen has reduced in value by a least a third against the dollar
What does that have to do with hyperinflation? Let's assume, for no particular reason, that the dollar inflates at 1% a year. For the yen to fall in dollar-measured value by a third over the same two years, it would need to inflate at an annual rate of 23.7%, or just under 1.79% per month. Nobody calls that hyperinflation. Compare the original definition of hyperinflation as inflation rising above 50% per month.
(Admittedly, there is a current standard[1] which views annual inflation in excess of 26% as a risk factor. But, first, 23.7 is less than 26, and second, they require other factors such as "the general population is unwilling to hold monetary instruments" and "prices are quoted in foreign currency". Do you see that happening in Japan?)
What does that have to do with hyperinflation? Let's assume, for no particular reason, that the dollar inflates at 1% a year. For the yen to fall in dollar-measured value by a third over the same two years, it would need to inflate at an annual rate of 23.7%, or just under 1.79% per month. Nobody calls that hyperinflation. Compare the original definition of hyperinflation as inflation rising above 50% per month.
(Admittedly, there is a current standard[1] which views annual inflation in excess of 26% as a risk factor. But, first, 23.7 is less than 26, and second, they require other factors such as "the general population is unwilling to hold monetary instruments" and "prices are quoted in foreign currency". Do you see that happening in Japan?)
[1] http://en.wikipedia.org/wiki/Hyperinflation