Quantitative Easing as a Highway to Hyperinflation

This book addresses the topical issue of whether the current environment in the US and other major countries, where quantitative easing is used to boost the economy, is conducive to the emergence of hyperinflation. This is a controversial and highly debated issue. Using both economics and history, the author challenges the view that quantitative easing will not lead to hyperinflation and argues that hyperinflation, or at least high inflation, is likely to appear eventually.

The book examines all the propositions put forward for and against the eventuality of hyperinflation in the US, using illustrations based on actual and simulated data. The analysis leads to the conclusion that the current fiscal position of the US government, particularly the levels of external debt and unfunded liabilities, will not be rectified without resorting to inflationary financing. The book would be useful not only for policy makers and economists but also for non-specialist observers.

Sample Chapter(s)
Chapter 1: Inflation, Deflation, Disinflation and All That (430 KB)

Contents:Inflation, Deflation, Disinflation and All ThatThe Measurement of InflationThe Monetary Theory of InflationOther Theories of Inflation and Some ExtensionsThe Consequences and Costs of InflationThe Phenomenon of HyperinflationThe History of Fiat Money and HyperinflationHyperinflationary Episodes since the 1970sThe Status Quo: Heading Towards Hyperinflation?Leading Indicators of U.S. HyperinflationConcluding Thoughts
Readership: Professionals, researchers and general public interested in understanding whether quantitative easing will lead to hyperinflation.