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[–]BigFatRetard 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Stagflation occurs when the state runs out of money, so they just print more. Printing more doesn't actually increase the productive value of the economy, so all it does is reduce the value of everyone else's money, so you're out of money in the sense that you don't have any more productivity to go around, but you've got all the money in the world in the sense that you can print whatever you like.

I've got over 100 trillion Zimbabwe dollars hanging on my wall. When it was minted, it wouldn't buy you a loaf of bread. They didn't really have any money in the sense of the ability to buy things, but they had all the money in the world in the sense that they were all trillionaires.