The Four Phases Of Hyperinflation, According To The IMF


Zero Hedge: Inflation is much more than a monetary phenomenon; it rips at the very core of social cohesion.

Secular high inflation is one of the worst possible experiences a population can face.

The Four Phases of Hyperinflation

Hyperinflations are generally defined as periods in which the monthly inflation rate exceeds 50%. In this 2018 paper, the IMF breaks hyperinflationary episodes out into four phases which comprise two stages:

Phase One: is “the rise”. The IMF also calls this “the extraordinary acceleration phase” which is the lead-up to the hyperinflation. IMF actually terms it “the path toward hyperinflation”, but given that they define that as an annual inflation rate of greater than 50% but under 500%, an uncredentialed, non-economist observer might describe that as already being hyperinflation.

“The average duration of the first phase is 8-9 years with an annual average inflation of 125 percent”

Phase Two: is the actual hyperinflation proper.

Wheelbarrows of money, burning banknotes in the oven (or more tragically, sticking your head in there).

Phases Three and Four are the second stage of a hyper inflationary event: “disinflation” – where the annual inflation rate plummets to somewhere between 50% and 500% and lasts another six years on average – and finally the “stabilization” phase, where inflation remains under 50% per year for at least three years.

The case for a “Phase Zero” of Hyperinflation:

I would argue that there is a Phase Zero: where the future inflationary path becomes baked in by unsustainable debt. While policy makers are still able to talk with a straight face as if there is an alternative, the path to inflation is assured.

We’ve been in Phase Zero for over 50 years, since the Nixon shock of 1971. We are at the edges of the Phase Zero to One transition now. Read More …

Opinion: Hyperinflation is the 3rd of 21 judgments that will descend on a Christ rejecting word. The Bible gives us clues as to how it comes, and it is sudden following the first 2 judgments:

The order of the 1st 4 judgments:

White Horse Rev. 6:1-2 False Christ comes arrives as a peace maker wearing a victors (stephanos) crown carrying a bow with no arrows.

Red Horse Rev. 6:3-4 Peace is taken from the earth with wars and rumors of war Matthew 24:6.

Black Horse Rev. 6:5-6 Global food prices spiral out of control affecting all but the 1% (oil and wine).

Pale Horse Rev. 6:7-8 a natural progression follows with unimaginable death of 25% of the population of the world.

As the judgments continue Matthew 24:8 NIV uses a birth pains metaphor increasing in frequency and severity.

At no point from Revelation 6:7-8 to Revelation 18:9-16, just before the Triumphal return of Jesus Christ (Revelation 19:11-16), can I find hyperinflation diminishing.

In fact, in Revelation 18, the global economy collapses under the weight of excess as the destruction of Babylon, the very symbol for wealth excess, has come:

“The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning.”

And the enormous wealth owned by the 1% is no more:

 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore.”

The Fall of Babylon | Way of Righteousness

See “The 1% and Revelation: Do Not Harm The Oil and Wine” HERE