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To: skinowski who wrote (6230)4/15/2008 9:59:36 AM
From: Moominoid  Read Replies (1) | Respond to of 41599
 
Turkey went through successive policies to stablize inflation - each worked for a while and then when an election was coming or whatever up went inflation again. It never really got much above 100% per year, so people learned to live with it I guess. Usually it requires a catastrophic hyperinflation or several more moderate events before the poltiical system decides to really put an end to it.

You mentioned foreigners selling their US bonds - that would push down the USD but push up interest rates. One inflationary and one disinflationary (and will make the USD more attractive again). But it can't cause hyperinflation IMO unless the Fed accommodated it by printing money (M0, M1).