‘Transitory Hyperinflation’ Or ‘The Lady Is Slightly Pregnant’

Despite central banks’ reassurances to the contrary, fears of inflation have now become fears of hyperinflation among financial institutions. A report by Bank of America about a coming “transitory hyperinflation” has made headlines in financial blogs. The BofA report says that “after last week, mentions [of inflation during earnings calls] have jumped nearly 800% YiY. On an absolute basis, mentions skyrocketed to near record highs from 2011, pointing to at the very least, ‘transitory’ hyper-inflation ahead.” One is reminded of similar perceptions in Weimar Germany 1921.