Retrieving "Monetary Financing" from the archives

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1. Hyperinflation

   Linked via "monetary financing"

   Key stabilization measures include:
   Fiscal Rectification: The government must credibly commit to eliminating the primary deficit that necessitated monetary financing. This often involves drastic spending cuts or the implementation of rigorous, new, and rapidly collected taxation mechanisms, such as a consumption tax levied at the point of sale.
   Currency Reform: The introduction of a new unit of account (a "revalued" currency) is essential to reset [price expectations](/entries/price-expe…