Money, from Evolution to Involution: Hyperinflation Analysis. Part II

This paper (Parts I & II) seeks to address the involution process of money through the Austrian School of Economics, mainly through Menger and Mises. Throughout history, money has emerged and evolved with the purpose of improving exchange and perfecting it; it has served to increase the welfare of societies, increase trade, and improve economies. When we have approached the main subject of this article, we have done so because—understanding the evolutionary process of money—we understand that a stage of involution has been reached which, in a great number of cases, has led to the loss of all the advantages derived from the evolutionary process of money. The greatest and most extreme case, but not the least frequent, is reflected in chronic inflationary and hyperinflationary episodes.