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jv
jv

The government can mitigate hyperinflation by printing less money, and when money makes its way back to the government via taxes, it can destroy it. With less money in circulation, the value of money will stabilise or even increase relative to supply.

In reply to
odd
odd

@jv Interesting. In Norway, where I live, it’s illegal to destroy money. Maybe the government is excluded from this though.

jv
jv

@odd Upon reflection, that part of the post is nonsense. The government doesn't actually destroy physical money because it exists mostly on computers. In reality, the government reduces the money supply via "quantative tightening". Quantative easing was when they created money (on computers) and bought their own bonds to put it into the economy via banks. That reduces the interest rate. Quantative tightening is when the central bank sell those bonds and other assets they acquired from QE to reduce the money supply and increase interest rates.