AgentR11 wrote:I'm just not seeing any instance where the price mechanism fails. The government can't be outbid. The domestic producers have to sell in dollars because all their legal obligations require payment in dollars, and there will be enough supplies for government use for a very, very long time. Even just talking conventional crude.
With sufficiently fast inflation selling becomes to be a losing exercise.
You gave away valuable goods for useless paper or meaningless digital records which cannot purchase anything few hours later.
Essentially after accepting dollars you are becoming bankrupt an hour later so you may well close the shop and sell nothing.
So you are either refusing dollar or sell for dollars only amount of goods needed to produce a sum needed for tax payment (such tax even if paid would be useless for government few hours later), or you join black market or just close your shop an call for government food aid.
So no, for those who wish to use official currency it is impossible to secure continuum of trade in hyperinflation environment.
Digital means of payment cannot change it.