Someone has to pay for all this work, us, will we pay by hyperinflation?

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If in the best case the upgrades are mostly done and we only suffer minor brown out etc. Someone is going to have to pay for all this work and that would be us. Is this going to hyperinflate our dollars to pay all these billions off, in this industry and others?

-- Anonymous, October 19, 1998

Answers

Hyperinflation? I doubt it. In fact if we manage to skirt this problem without major disruptions some analysts see a silver lining in increased production do to the massive upgrade of our IT systems world wide. On the other hand if we don't inflation is a possibility due to the disruptions in supply that might appear. The oil shocks of the 70's are a good example of such an inflationary spirl. Oil production and food production are indeed at risk so inflation is a real possibility Hyperinflation like Brazil or Russia or post-WW1 Germany though isn't likely. That would require a collapse. Depression would be the more likey result of a general "systemic" collapse. Whether that depression would be accompanied by a deflation (30's style) or an inflation (70's style) is anybody's guess at this juncture.

-- Anonymous, October 20, 1998

I am not an economist so take this for what it is worth. If we have disruptions I am guessing we will see hyperinflation for the price of necessities like food and fuel. On the other hand, major job losses could cause a recession or depression so we are likely to see major price drops in the stock market and real estate. We could simultaneously have inflation and disinflation.

-- Anonymous, October 20, 1998

Inflation is a monetary term meaning the increase in the amount of currency in circulation. Hyperinflation refers to the rapid devaluing of the currency due to increase in the supply of "cash". I fail to see the connection between spending money on Y2k upgrades and inflation.

-- Anonymous, October 21, 1998

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