"Governments control the money supply through their central banks. But like other lubricants, money can get overheated and damage the economic engine. It can grow out of control and cause a hyperinflation, in which prices increase very rapidly. When that happens, people concentrate on spending their money quickly, before it loses its value, rather than investing it for the future. That’s what happened to several Latin American countries in the 1980s, and many former socialist economies in the 1990s, when they had inflation rates exceeding 1000 percent or even 10,000 percent per year. Imagine getting your paycheck and having it lose 20 percent of its value by the end of the week!"

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Added on April 10, 2026
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Original Language: English

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https://en.wikiquote.org/wiki/Economics_(textbook)