mistel
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Say you had hyperinflation, that would mean imports are cheap,
couldn't you buy up all the diamonds, gold and stuff, fix the inflation with a policy, then sell these resources in the future for a surge of revenue?

or do companies go, 'oh look they have hyperinflation, we are not selling'


which one is it? ;p
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OrionMusicNet
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(Original post by mistel)
Say you had hyperinflation, that would mean imports are cheap,
couldn't you buy up all the diamonds, gold and stuff, fix the inflation with a policy, then sell these resources in the future for a surge of revenue?

or do companies go, 'oh look they have hyperinflation, we are not selling'


which one is it? ;p
Hyperinflation would mean that imports are relatively cheaper compared to domestically produced products which incentives people to buy them. Diamonds would still be just as expensive as they were before it's just that for example any diamonds produced in the UK (I know we don't have any in reality) would be more expensive causing the imported diamonds to look cheaper when it is actually only relative.
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SotonianOne
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(Original post by mistel)
or do companies go, 'oh look they have hyperinflation, we are not selling'
Pretty much.

Can't answer this in an economic sense as there isn't an exam on this, but if the price rises significantly overseas corporations will have difficulties to break-even as they are unsure of what price to charge their customers. This was most recently seen in Russia during November 2014 - February 2015 when corporations like Apple and Jaguar ceased trading due to excessive inflation and halving of the exchange rate.
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