Why you should stop worrying about hyperinflation

With governments printing money like it's going out of fashion, many people are concerned about inflation soaring out of control. But they needn't worry, says Bengt Saelensminde.

My inbox is swelling with emails from concerned readers telling me that hyperinflation is coming soon. They talk of food prices, Chinese wages, and another round of quantitative easing (QE); some have even mentioned Zimbabwe! They tell me I've got it all wrong and that my deflation talk is simply bonkers.

But as informed as many of these arguments are, they are missing one thing: there's already more than enough money in the system to create hyperinflation. In fact, it could have happened at any point in the last 39 years. But it hasn't; and today I'd like to explain why that is.

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Bengt graduated from Reading University in 1994 and followed up with a master's degree in business economics.

 

He started stock market investing at the age of 13, and this eventually led to a job in the City of London in 1995. He started on a bond desk at Cantor Fitzgerald and ended up running a desk at stockbroker's Cazenove.

 

Bengt left the City in 2000 to start up his own import and beauty products business which he still runs today.