Q. Consider the following statements with respect to Galloping Inflation:
1. This form of inflation is ‘large and accelerating’ which might have the annual rates in million or even trillion
2. Latin American countries such as Argentina, Chile and Brazil had such rates of inflation
Which of the statements given above is/are correct?
Answer: B
Notes:
This is a ‘very high inflation’ running in the range of double-digit or triple digit (i.e., 20 per cent, 100 per cent or 200 per cent in a year). In the decades of 1970s and 1980s, many Latin American countries such as Argentina, Chile and Brazil had such rates of inflation—in the range of 50 to 700 per cent. The Russian economy did show such inflation after the disintegration of the ex-USSR in the late 1980s. Contemporary journalism has given some other names to this inflation —hopping inflation, jumping inflation and running or runaway inflation.
Source: ForumIAS
