Economics : Inflation

HYPERINFLATION1HyperinflationNameInstitutionHYPERINFLATION2The primary argument the students are making in this video is to raise inflation by 50% everymonth so that the dollar can depreciate and their students loans can become cheap. From theeconomic point of view, this is not possible due to the disadvantages, and the effectshyperinflation would have on the economy. For instance, it will cause chaos and uncertaintiesto investors since the purchasing power will not be predictable in the long run. However,some advantages are involved in taking this path. The merits of devaluing the dollar by 50%each month are that the value for the student loan will decrease. This means that they will notstruggle to pay the money. Secondly, inflation and employment are directly related. Thismeans that with inflation going high as 50% per month, firms would be ready to producemore products to the economy due to demand. This means that job opportunities forgraduates will be created. With the value of debts decreasing in the economy, people willhave more money to invest in other ventures, and this will help in the economic growth of theeconomy. Also, inflation can help in s ...


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