Currency Substitution

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August 31, 2024 4 min read Definitions

Flight from Money: Understanding Economic Behavior during Hyperinflation

Economics Finance Hyperinflation Currency Substitution Barter Economy Inflation Dynamics Economic Behavior

Flight from Money refers to the tendency when inflation is very high for people to abandon the use of money, or at least that of their own country. Under hyperinflation, people refuse to accept money and try to spend any they receive as quickly as possible. This phenomenon may lead to the use of other goods, bartering, or shifting to foreign currency.