What I think it is, is that the government got a little greedy. People couldn't pay their basic necessities, so the economy couldn't grow because people don't have enough money to let it grow. So the government doesn't get enough money to survive because for them, everything is also too expensive. So what do they do, they print more money to afford their luxuries, and by doing so, creating more existing money, and that means that the money loses more value, and for the people things become more expensive, also for the government, so they print again more money and by doing so, you get returning circle.
If the government wasn't greedy in the first place and didn't try to regulate people lives as far as deciding what they can and cant eat, this didn't happened. Anyway, that is just an speculation, but I have seen it many times, that is what socialism does to a country. The government just want to control people, and have power over them, and also keep their luxury lifestyles.
inflation rate is so high because the country is not able to repay the debt in time. So what is does, is they artificially make the price of their fiat currency lower, so the loan they have is also lower. But what they do with lower price of their own currency, is high interest rate. Too high. So high, it is not even acceptable any more. They could reduce inflation rate if country repays all of their debt or if their debt will be canceled ( just like Germany's debt was canceled in 1953)
In the end: you can not fake the market on all sides. Markets always slap you back, in one way or the other
What I think it is, is that the government got a little greedy. People couldn't pay their basic necessities, so the economy couldn't grow because people don't have enough money to let it grow. So the government doesn't get enough money to survive because for them, everything is also too expensive. So what do they do, they print more money to afford their luxuries, and by doing so, creating more existing money, and that means that the money loses more value, and for the people things become more expensive, also for the government, so they print again more money and by doing so, you get returning circle.
If the government wasn't greedy in the first place and didn't try to regulate people lives as far as deciding what they can and cant eat, this didn't happened. Anyway, that is just an speculation, but I have seen it many times, that is what socialism does to a country. The government just want to control people, and have power over them, and also keep their luxury lifestyles.
Again, all speculations.
inflation rate is so high because the country is not able to repay the debt in time. So what is does, is they artificially make the price of their fiat currency lower, so the loan they have is also lower. But what they do with lower price of their own currency, is high interest rate. Too high. So high, it is not even acceptable any more. They could reduce inflation rate if country repays all of their debt or if their debt will be canceled ( just like Germany's debt was canceled in 1953)
In the end: you can not fake the market on all sides. Markets always slap you back, in one way or the other