Forget the Fiat – It’s CONFIDENCE

QUESTION: Hello Mr. Armstrong,

In a recent post you write, “HYPERINFLATION takes place not because of any threshold in the quantity of money that has been crossed. It is a matter of confidence.”

Is there any historical precedence for a people losing confidence in a currency, where it is being restricted, i.e., not printed in vast amounts?

In other words – Has a population lost confidence in fiat, that then leads to hyperinflation, where there is no monetary expansion?

Your thoughts would be appreciated.


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