Recall the Application about the study by Thomas J. Sargent of hyperinflations after World War I in Germany, Austria, Hungary, and Poland, and how those hyperinflations ended, to answer the following question(s).
-According to this Application, Sargent found that in each of the four cases studied, hyperinflation ended
A) when the governments were overthrown and the central banks were dissolved.
B) with the creation of a central bank and change in the way that governments were financed.
C) when the central banks were given less independence and the governments required the central banks to stop printing money.
D) by increases in government spending to stimulate the economy and boost the private sector.

Question

Quizplus · Accepted Answer

Sargent found that hyperinflation in each of the four cases studied ended with the creation of a central bank and change in the way that governments were financed. This allowed for greater control over monetary policy and reduced the temptation for governments to simply print more money to finance their activities.

Recall the Application About the Study by Thomas J