Flight into real goods
From Mises Wiki, the global repository of classical-liberal thought
Flight into goods (or flight into real values or crack-up boom) is the frantic rush to spend all monetary savings and other available cash, buying goods, whether needed or not, in order to avoid holding, even for a short time, any rapidly depreciating monetary units. This occurs at that point in the development of inflation when the public is convinced that prices will continue to rise endlessly and at an accelerated pace.
The flight into goods or real values marks the complete breakdown of a monetary system.
See also: Hyperinflation
- ↑ Percy L. Greaves Jr. "Mises Made Easier", Mises Institute, 1974. Referenced 2011-03-16.