126-640: The Botswana Patriotic Front (BPF) is a populist political party in Botswana formed in July 2019 by members of the Botswana Democratic Party who split from the party because of a high-profile rivalry between former presidents Ian Khama and Mokgweetsi Masisi . The party was officially launched in July 2019 as a split from the ruling Botswana Democratic Party (BDP). It was backed by former president and BDP leader Ian Khama after he left
252-626: A pejorative . Within political science and other social sciences , several different definitions of populism have been employed, with some scholars proposing that the term be rejected altogether. A common framework for interpreting populism is known as the ideational approach: this defines populism as an ideology that presents "the people" as a morally good force and contrasts them against "the elite", who are portrayed as corrupt and self-serving. Populists differ in how "the people" are defined, but it can be based along class, ethnic, or national lines. Populists typically present "the elite" as comprising
378-695: A challenge in that they now represent a new elite. In such cases—like Chávez in Venezuela and Vladimír Mečiar in Slovakia—populists retain their anti-establishment rhetoric by making changes to their concept of "the elite" to suit their new circumstances, alleging that real power is not held by the government but other powerful forces who continue to undermine the populist government and the will of "the people" itself. In these instances, populist governments often conceptualise "the elite" as those holding economic power . In Venezuela, for example, Chávez blamed
504-434: A civil war may make it difficult to raise taxes or to collect existing taxes. While in peacetime the deficit is financed by selling bonds, during a war it is typically difficult and expensive to borrow, especially if the war is going poorly for the government in question. The banking authorities, whether central or not, "monetize" the deficit, printing money to pay for the government's efforts to survive. The hyperinflation under
630-553: A common cause. One of the ways that populists employ the understanding of "the people" is in the idea that "the people are sovereign", that in a democratic state governmental decisions should rest with the population and that if they are ignored then they might mobilise or revolt. This is the sense of "the people" employed in the late 19th century United States by the People's Party and which has also been used by later populist movements in that country. A second way in which "the people"
756-704: A constant problem of economy of Argentina , with an annual rate of 25% in 2017, second only to Venezuela in South America and the highest in the G20 . On December 28, the Central Bank of Argentina together with the Treasury announced a change of the inflation target . The Central Bank attempted to reduce it to 15%, by adjusting its interest rates but these efforts only managed to stop further inflation rather than reduce it. An intense drought , ranking among
882-411: A corresponding growth in the output of goods and services. The increases in price that can result from rapid money creation can create a vicious circle, requiring ever growing amounts of new money creation to fund government deficits. Hence both monetary inflation and price inflation proceed at a rapid pace. Such rapidly increasing prices cause widespread unwillingness of the local population to hold
1008-427: A currency promotes excessive money printing, with other factors contributing a reinforcing effect, hyperinflation usually continues. Hyperinflation is generally associated with paper money, which can easily be used to increase the money supply: add more zeros to the plates and print, or even stamp old notes with new numbers. Historically, there have been numerous episodes of hyperinflation in various countries followed by
1134-424: A dichotomy between inclusionary and exclusionary forms, such as right-wing populists welcoming culturally proximate migrants with transnational solidarity. Populists (claim to) speak in the name of the 'oppressed people', and they want to emancipate them by making them aware of their oppression. However, they do not want to change their values or their 'way of life.' This is fundamentally different from, for example,
1260-737: A discourse, ideology, or worldview. These definitions were initially employed largely in Western Europe, although later became increasingly popular in Eastern Europe and the Americas. According to this approach, populism is viewed as a "thin ideology" or "thin-centred ideology" which on its own is seen as too insubstantial to provide a blueprint for societal change. It thus differs from the "thick-centred" or "full" ideologies such as fascism , liberalism , and socialism, which provide more far-reaching ideas about social transformation. As
1386-414: A family of related concepts rather than as a single concept in itself. The confusion surrounding the term has led some scholars to suggest that it should be abandoned by scholarship. In contrast to this view, the political scientists Cas Mudde and Cristóbal Rovira Kaltwasser stated that "while the frustration is understandable, the term populism is too central to debates about politics from Europe to
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#17327867992081512-705: A given society, populists often exclude both themselves and those sympathetic to their cause even when they too are in positions of power. For instance, the Freedom Party of Austria (FPÖ), a right-wing populist group, regularly condemned "the media" in Austria for defending "the elite", but excluded from that the Kronen Zeitung , a widely read tabloid that supported the FPÖ and its leader Jörg Haider . When populists take governmental power, they are faced with
1638-430: A government to devalue its debts and reduce (or avoid) a tax increase. Monetary inflation is effectively a flat tax on creditors that also redistributes proportionally to private debtors. Distributional effects of monetary inflation are complex and vary based on the situation, with some models finding regressive effects but other empirical studies progressive effects. As a form of tax, it is less overt than levied taxes and
1764-505: A highly emotional manner, or with political opportunism, to characterise politicians who exploit problems and seek to please voters without rational consideration as to the best course of action. Some scholars have linked populist policies to adverse economic outcomes, as "economic disintegration, decreasing macroeconomic stability, and the erosion of institutions typically go hand in hand with populist rule." Although frequently used by historians, social scientists, and political commentators,
1890-451: A homogeneous/pure people, or that it takes shape socially as an ideology. These assumptions can be counter-productive to the study of populism which has arguably become excessively conceptually deductive. Still, this does not mean we cannot come to a more minimal, formal definition of what populism is that can consensually group scholars and open up research to a broader scope, as indicated by Stavrakakis and De Cleen in defining populism as
2016-461: A loss of confidence in the currency, similar to a bank run . The excessive money supply growth can result from speculating by private borrowers, or may result from the government being either unable or unwilling to fully finance the government budget through taxation or borrowing. The government may instead finance a government deficit through the creation of money. Governments have sometimes resorted to excessively loose monetary policy, as it allows
2142-457: A manageable 4.9% rate of inflation. In 1987, the peso boliviano was replaced by the new boliviano at a rate of one million to one (when 1 US dollar was worth 1.8–1.9 million pesos bolivianos). At that time, 1 new boliviano was roughly equivalent to 52 U.S. cents. Brazilian hyperinflation lasted from 1985 (the year when the military dictatorship ended) to 1994, with prices rising by 184,901,570,954.39% (or 1.849 × 10 percent; equivalent to
2268-540: A much stricter sense, generally being focused on a particular sociocultural group and antagonistic against minority groups. However, this is not exactly a pure dichotomy—exclusive populists can still give voice to those who feel marginalised by the political status quo and include minorities if it is advantageous, while inclusive populists can vary significantly in how inclusive they actually are. In addition, all populisms are implicitly exclusionary, since they define "the people" against "the elite", thus some scholars argue that
2394-402: A pejorative sense have subsequently embraced the term while seeking to shed it of negative connotations. The French far-right politician Jean-Marie Le Pen for instance was often accused of populism and eventually responded by stating that "Populism precisely is taking into account the people's opinion. Have people the right, in a democracy, to hold an opinion? If that is the case, then yes, I am
2520-595: A penalty of n months of interest/payment; again no real bar to paying off what had been a large loan. In interwar Germany, for example, much private and corporate debt was effectively wiped out—certainly for those holding fixed interest rate loans. As more and more money is provided, interest rates decline towards zero. Realizing that fiat money is losing value, investors will try to place money in assets such as real estate, stocks, even art; as these appear to represent "real" value. Asset prices are thus becoming inflated. This potentially spiraling process will ultimately lead to
2646-639: A populist." Similarly, on being founded in 2003, the centre-left Lithuanian Labour Party declared: "we are and will be called populists." Following 2016, the year which saw the election of Donald Trump as president of the United States and the United Kingdom's vote to leave the European Union —both events linked to populism—the word populism became one of the most widely used terms by international political commentators. In 2017,
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#17327867992082772-410: A relationship between seigniorage and the inflation tax . In both Cagan's model and the neo-classical models, a tipping point occurs when the increase in money supply or the drop in the monetary base makes it impossible for a government to improve its financial position. Thus when fiat money is printed, government obligations that are not denominated in money increase in cost by more than the value of
2898-453: A return to "hard money". Older economies would revert to hard currency and barter when the circulating medium became excessively devalued, generally following a "run" on the store of value . Much attention on hyperinflation centers on the effect on savers whose investments become worthless. Interest rate changes often cannot keep up with hyperinflation or even high inflation, certainly with contractually fixed interest rates. For example, in
3024-432: A synonym for "the nation", whether that national community be conceived in either ethnic or civic terms. In such a framework, all individuals regarded as being "native" to a particular state, either by birth or by ethnicity, could be considered part of "the people". Left and right populists ... both regard representative democracy as being captivated by political elites and powerful interest groups. However, populists of
3150-547: A tenfold increase on average a year) in that time due to the uncontrolled printing of money. There were many economic plans that tried to contain hyperinflation including zeroes cuts, price freezes and even confiscation of bank accounts . The highest value was in March 1990, when the government inflation index reached 82.39%. Hyperinflation ended in July 1994 with the Real Plan during the government of Itamar Franco. During
3276-579: A thin-centred ideology, populism is therefore attached to a thick-ideology by populist politicians. Thus, populism can be found merged with forms of nationalism, liberalism, socialism, federalism , or conservatism. According to Stanley, "the thinness of populism ensures that in practice it is a complementary ideology: it does not so much overlap with as diffuse itself throughout full ideologies." Populism is, according to Mudde and Rovira Kaltwasser, "a kind of mental map through which individuals analyse and comprehend political reality". Mudde noted that populism
3402-497: A traumatic experience for the people who suffer it, and the next political regime almost always enacts policies to try to prevent its recurrence. Often this means making the central bank very aggressive about maintaining price stability, as was the case with the German Bundesbank , or moving to some hard basis of currency, such as a currency board . Many governments have enacted extremely stiff wage and price controls in
3528-516: A type of discourse ‘characterized by a people/elite distinction and the claim to speak in the name of "the people."’ As a result of the various different ideologies with which populism can be paired, the forms that populism can take vary widely. Populism itself cannot be positioned on the left–right political spectrum , and both right and left-wing populisms exist. Populist movements can also mix divisions between left and right, for instance by combining xenophobic attitudes commonly associated with
3654-653: A wide array of political actors". The political scientist Ben Stanley noted that "although the meaning of the term has proven controversial in the literature, the persistence with which it has recurred suggests the existence at least of an ineliminable core: that is, that it refers to a distinct pattern of ideas." Political scientist David Art argues that the concept of populism brings together disparate phenomena in an unhelpful manner, and ultimately obscures and legitimizes figures who are more comprehensively defined as nativists and authoritarians. Although academic definitions of populism have differed, most of them have focused on
3780-465: A year. Economists usually follow Cagan's description that hyperinflation occurs when the monthly inflation rate exceeds 50% (this is equivalent to a yearly rate of 12,874.63%, so that the amount becomes 129.7463 times as high). The International Accounting Standards Board has issued guidance on accounting rules in a hyperinflationary environment. It does not establish an absolute rule on when hyperinflation arises, but instead lists factors that indicate
3906-616: Is "moralistic rather than programmatic". It encourages a binary world-view in which everyone is divided into "friends and foes", with the latter being regarded not just as people who have "different priorities and values" but as being fundamentally "evil". In emphasising one's purity against the corruption and immorality of "the elite", from which "the people" must remain pure and untouched, populism prevents compromise between different groups. The incredible rise in research and discussion about populism, both academic and social, stems largely from efforts by ideational scholars to place centre stage
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4032-499: Is Turkey's revaluation of the lira on 1 January 2005, when the old Turkish lira (TRL) was converted to the new Turkish lira (TRY) at a rate of 1,000,000 old to 1 new lira. While this does not lessen the actual value of a currency, it is called redenomination or revaluation and also occasionally happens in countries with lower inflation rates. During hyperinflation, currency inflation happens so quickly that bills reach large numbers before revaluation. Governments may try to disguise
4158-455: Is a product of "an antagonistic relationship" between "the people" and "the elite", and is "latent wherever the possibility occurs for the emergence of such a dichotomy". The political scientist Manuel Anselmi proposed that populism be defined as featuring a "homogeneous community-people" which "perceives itself as the absolute holder of popular sovereignty" and "expresses an anti-establishment attitude." This understanding conceives of populism as
4284-552: Is a very high and typically accelerating inflation . It quickly erodes the real value of the local currency , as the prices of all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable foreign currencies. Effective capital controls and currency substitution ("dollarization") are the orthodox solutions to ending short-term hyperinflation; however there are significant social and economic costs to these policies. Ineffective implementations of these solutions often exacerbate
4410-429: Is conceived by populists combines a socioeconomic or class based category with one that refers to certain cultural traditions and popular values. The concept seeks to vindicate the dignity of a social group who regard themselves as being oppressed by a dominant "elite" who are accused of treating "the people's" values, judgements, and tastes with suspicion or contempt. A third use of "the people" by populists employs it as
4536-571: Is rare given that the "people" and "elite" are typically of the same ethnicity. For some populist leaders and movements, the term "the elite" also refers to an academic or intellectual establishment and, as such, entails scholars, intellectuals, experts, or organized science as a whole. Such leaders and movements may criticise scientific knowledge as abstract, useless, and ideologically biased, and instead demand common sense , experiential knowledge, and practical solutions to be "true knowledge". Hyperinflation In economics , hyperinflation
4662-411: Is seen to favour, such as immigrants, homosexuals, travellers, or communists. Populist leaders thus "come in many different shades and sizes" but, according to Mudde and Rovira Kaltwasser, share one common element: "a carefully crafted image of the vox populi ". Stanley expressed the view that although there are "certain family resemblances" that can be seen between populist groups and individuals, there
4788-425: Is that it is in an "adversarial relationship" with "the people". In defining "the elite", populists often condemn not only the political establishment, but also the economic elite, cultural elite, academic elite, and the media elite, which they present as one homogeneous, corrupt group. In early 21st century India, the populist Bharatiya Janata Party for instance accused the dominant Indian National Congress party,
4914-469: Is therefore harder to understand by ordinary citizens. Inflation can obscure quantitative assessments of the true cost of living, as published price indices only look at data in retrospect, so may increase only months later. Monetary inflation can become hyperinflation if monetary authorities fail to fund increasing government expenses from taxes , government debt , cost cutting, or by other means, because either Theories of hyperinflation generally look for
5040-484: Is time" in Setswana . Populism Populism is a range of political stances that emphasize the idea of the common people and often position this group in opposition to a perceived elite group. It is frequently associated with anti-establishment and anti-political sentiment. The term developed in the late 19th century and has been applied to various politicians, parties and movements since that time, often as
5166-701: The Cambridge Dictionary declared it the Word of the Year . Until the 1950s, use of the term populism remained restricted largely to historians studying the People's Party, but in 1954 the US sociologist Edward Shils published an article proposing populism as a term to describe anti-elite trends in US society more broadly. Following on from Shils' article, during the 1960s the term "populism" became increasingly popular among sociologists and other academics in
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5292-557: The Chinese Nationalists from 1939 to 1945 is a classic example of a government printing money to pay civil war costs. By the end, currency was flown in over the Himalayas, and then old currency was flown out to be destroyed. Hyperinflation is a complex phenomenon and one explanation may not be applicable to all cases. In both of these models, however, whether loss of confidence comes first, or central bank seigniorage ,
5418-592: The Communist Party of India , NGOs, academia, and the English-language media of all being part of "the elite". When operating in liberal democracies, populists often condemn dominant political parties as part of "the elite" but at the same time do not reject the party political system altogether, instead either calling for or claiming to be a new kind of party different from the others. Although condemning almost all those in positions of power within
5544-594: The U.S. dollar ) as a national unit of currency. An example was dollarization in Ecuador, initiated in September 2000 in response to a 75% loss of value of the Ecuadorian sucre in early 2000. Usually the "dollarization" takes place in spite of all efforts of the government to prevent it by exchange controls, heavy fines and penalties. The government has thus to try to engineer a successful currency reform stabilizing
5670-539: The interest rate again, to 60%, but could not keep up. Macri announced on 8 May 2018 that Argentina would seek a loan from the International Monetary Fund (IMF). The initial loan was $ 50 billion, and the country pledged to reduce inflation and public spending . Federico Sturzenegger , the president of the Central Bank of Argentina , resigned a week later, alongside much of its senior staff. Macri replaced him with Luis Caputo , and merged
5796-401: The left–right political spectrum , and there exist both left-wing populism and right-wing populism . Other scholars of the social sciences have defined the term populism differently. According to the popular agency definition used by some historians of United States history, populism refers to popular engagement of the population in political decision-making. An approach associated with
5922-479: The social sciences . In 1967 a Conference on Populism was held at the London School of Economics , the participants of which failed to agree on a clear, single definition. As a result of this scholarly interest, an academic field known as "populism studies" emerged. Interest in the subject grew rapidly: between 1950 and 1960 about 160 publications on populism appeared, while between 1990 and 2000 that number
6048-660: The "Church of the Left". In some instances, particularly in Latin America and Africa, "the elites" are conceived not just in economic but also in ethnic terms, representing what political scientists have termed ethnopopulism . In Bolivia, for example, the left-wing populist leader Evo Morales juxtaposed the mestizo and indigenous "people" against an overwhelmingly European "elite", declaring that "We Indians [i.e. indigenous people] are Latin America's moral reserve". In
6174-422: The (early) socialists, who want(ed) to 'uplift the workers' by re-educating them, thereby liberating them from their 'false consciousness'. For populists, on the other hand, the consciousness of the people, generally referred to as common sense, is the basis of all good (politics). Political scientist Cas Mudde For populists, "the people" are presented as being homogeneous, and also virtuous. In simplifying
6300-405: The 1970s in the United Kingdom inflation reached 25% per annum, yet interest rates did not rise above 15%—and then only briefly—and many fixed interest rate loans existed. Contractually, there is often no bar to a debtor clearing his long term debt with "hyperinflated cash", nor could a lender simply somehow suspend the loan. Contractual "early redemption penalties" were (and still are) often based on
6426-717: The 1990s, populism was often associated with politicians like Peru's Alberto Fujimori who promoted neoliberal economics, while in the 2000s it was instead associated with those like Venezuela's Hugo Chávez who promoted socialist programs. As well as populists of the left and right, populist figures like Italy's Beppe Grillo have been characterised as centrist and liberal , while groups like Turkey's Justice and Development Party have been described as combining populism with Islamism , and India's Bharatiya Janata Party has been seen as mixing populism with Hindu nationalism . Although populists of different ideological traditions can oppose each other, they can also form coalitions, as
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#17327867992086552-475: The Americas to simply do away with." Similarly, Canovan noted that the term "does have comparatively clear and definite meanings in a number of specialist areas" and that it "provides a pointer, however shaky, to an interesting and largely unexplored area of political and social experience". The political scientists Daniele Albertazzi and Duncan McDonnell thought that "if carefully defined, the term 'populism' can be used profitably to help us understand and explain
6678-585: The Bolivian case, this was not accompanied by a racially exclusionary approach, but with an attempt to build a pan-ethnic coalition which included European Bolivians against the largely European Bolivian elite. In South Africa, the populist Julius Malema has presented black South Africans as the "people" whom he claims to represent, calling for the expropriation of land owned by the white minority without compensation. In areas like Europe where nation-states are more ethnically homogeneous, this ethnopopulist approach
6804-462: The French hyperinflation of 1789–1796, occurred after the use of fiat currency became widespread in the late 19th century. The French hyperinflation took place after the introduction of a non-convertible paper currency, the assignat . Monetarist theories hold that hyperinflation occurs when there is a continuing (and often accelerating) rapid increase in the amount of money that is not supported by
6930-527: The Germans and Italians started requesting more and more drachmas from the Bank of Greece to offset price increases; each time prices increased, the note circulation followed suit soon afterwards. For the year starting November 1943, the inflation rate was 2.5 × 10 %, the circulation was 6.28 × 10 drachmae and one gold sovereign cost 43,167 billion drachmas. The hyperinflation started subsiding immediately after
7056-592: The National Assembly except the Alliance for Progressives . However, during a party retreat on the 6th of April 2024, the party left the alliance, opting for a " pact model " instead of running under the UDC symbol ahead of the 2024 elections . The Botswana Patriotic Front uses a clock with its arms pointing at 4 o'clock as its logo or election symbol. The clock is accompanied by the words Ke Nako , meaning "it
7182-538: The book often regarded as the first serious study of hyperinflation and its effects (though The Economics of Inflation by C. Bresciani-Turroni on the German hyperinflation was published in Italian in 1931 ). In his book, Cagan defined a hyperinflationary episode as starting in the month that the monthly inflation rate exceeds 50%, and as ending when the monthly inflation rate drops below 50% and stays that way for at least
7308-426: The breakdown of the gold or silver standards ( Thiers' law ). If inflation is high enough, government regulations like heavy penalties and fines, often combined with exchange controls, cannot prevent this currency substitution. As a consequence, the inflating currency is usually heavily undervalued compared to stable foreign money in terms of purchasing power parity. So foreigners can live cheaply and buy at low prices in
7434-400: The collapse of the monetary system. The Cantillon effect says that those institutions that receive the new money first are the beneficiaries of the policy. Hyperinflation is ended by drastic remedies, such as imposing the shock therapy of slashing government expenditures or altering the currency basis. One form this may take is dollarization , the use of a foreign currency (not necessarily
7560-518: The common use of the term Populism to refer to far-right nativism and racism, noting that the original People's Party was relatively liberal on the rights of women and minorities by the standards of the time. The V-Party Dataset assesses populism as anti-elitism and people-centrism. A thin-centred ideology that considers society to be ultimately separated into two homogenous and antagonistic camps, "the pure people" versus "the corrupt elite", and which argues that politics should be an expression of
7686-427: The complexities of reality, the concept of "the people" is vague and flexible, with this plasticity benefitting populists who are thus able to "expand or contract" the concept "to suit the chosen criteria of inclusion or exclusion" at any given time. In employing the concept of "the people", populists can encourage a sense of shared identity among different groups within a society and facilitate their mobilisation toward
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#17327867992087812-487: The consumer price index rose by a factor of 11,836, with the highest banknote in denominations of 500,000 Kronen . After World War I , essentially all State enterprises ran at a loss, and the number of state employees in the capital, Vienna, was greater than in the earlier monarchy, even though the new republic was nearly one-eighth of the size. Observing the Austrian response to developing hyperinflation, which included
7938-431: The countries hit by high inflation. It follows that governments that do not succeed in engineering a successful currency reform in time must finally legalize the stable foreign currencies (or, formerly, gold and silver) that threaten to fully substitute the inflating money. Otherwise, their tax revenues, including the inflation tax, will approach zero. The last episode of hyperinflation in which this process could be observed
8064-401: The currency. This in turn leads to a greater fear that the currency will collapse, causing even higher premiums. One example of this is during periods of warfare, civil war, or intense internal conflict of other kinds: governments need to do whatever is necessary to continue fighting, since the alternative is defeat. Expenses cannot be cut significantly since the main outlay is armaments. Further,
8190-475: The departure of the German occupation forces, but inflation rates took several years to fall below 50%. The Treaty of Trianon and political instability between 1919 and 1924 led to a major inflation of Hungary's currency. In 1921, in an attempt to stop this inflation, the national assembly of Hungary passed the Hegedüs reforms, including a 20% levy on bank deposits, but this precipitated a mistrust of banks by
8316-435: The difference between populisms is not whether a particular populism excludes but whom it excludes from its conception of "the people". Anti-elitism is widely considered the central characteristic feature of populism, although Mudde and Rovira Kaltwasser argued that anti-elitism alone was not evidence of populism. Rather, according to Stanley, in populist discourse the "fundamental distinguishing feature" of "the elite"
8442-544: The economic elite for frustrating his reforms, while in Greece, the left-wing populist Prime Minister Alexis Tsipras accused "the lobbyists and oligarchs of Greece" of undermining his administration. In populist instances like these, the claims made have some basis in reality, as business interests seek to undermine leftist-oriented economic reform. Although left-wing populists who combine populist ideas with forms of socialism most commonly present "the elite" in economic terms,
8568-633: The end of the Chinese Civil War , the Republic of China went through a period of hyperinflation. In 1947, the highest denomination bill was 50,000 yuan . By mid-1948, the highest denomination was 180,000,000 yuan. In October 1948, the Nationalist government replaced its fabi currency with the gold yuan. The gold yuan deteriorated even faster than the fabi had. The Communists gained significant legitimacy by defeating hyperinflation in
8694-475: The exchange rate was 4,200,000,000,000ℳ ( 4.2 × 10 marks) to 1 US dollar. In 1923, the rate of inflation hit 3.25 × 10 percent per month (prices double every two days). Beginning on 20 November 1923, 1,000,000,000,000ℳ ( 10 ℳ, 1 trillion marks) were exchanged for 1 Rentenmark , so that RM 4.2 was worth 1 US dollar, exactly the same rate the mark had in 1914. With the German invasion in April 1941, there
8820-508: The existence of hyperinflation: While there can be a number of causes of high inflation, almost all hyperinflations have been caused by government budget deficits financed by currency creation. Peter Bernholz analysed 29 hyperinflations (following Cagan's definition) and concludes that at least 25 of them have been caused in this way. A necessary condition for hyperinflation is the use of paper money instead of gold or silver coins. Most hyperinflations in history, with some exceptions, such as
8946-417: The far-right British National Party conceived of the "native British people" as its heartland. Mudde noted that for populists, "the people" "are neither real nor all-inclusive, but are in fact a mythical and constructed sub-set of the whole population". They are an imagined community, much like the imagined communities embraced and promoted by nationalists. Populism often entails presenting "the people" as
9072-400: The far-right with redistributive economic policies closer to those of the left. [Populism's] core consists of four distinct but interrelated concepts: The ideational definition of populism used by Ben Stanley The ideologies with which populism can be paired can be contradictory, resulting in different forms of populism that can oppose each other. For instance, in Latin America during
9198-519: The first major use of the term in English was by members of the left-leaning agrarian People's Party and its predecessors, which were active in the United States from around 1889 to 1909. The Russian and American movements differed in various respects. In the 1920s, the term entered the French language , where it was used to describe a group of writers expressing sympathy for ordinary people. As
9324-490: The government budget, such as wars or their aftermath, sociopolitical upheavals, a collapse in aggregate supply or one in export prices, or other crises that make it difficult for the government to collect tax revenue. A sharp decrease in real tax revenue coupled with a strong need to maintain government spending, together with an inability or unwillingness to borrow, can lead a country into hyperinflation. In 1956, Phillip Cagan wrote The Monetary Dynamics of Hyperinflation ,
9450-694: The hoarding of food and the speculation in foreign currencies, Owen S. Phillpotts, the Commercial Secretary at the British Legation in Vienna wrote: "The Austrians are like men on a ship who cannot manage it, and are continually signalling for help. While waiting, however, most of them begin to cut rafts, each for himself, out of the sides and decks. The ship has not yet sunk despite the leaks so caused, and those who have acquired stores of wood in this way may use them to cook their food, while
9576-516: The idea that it should reference some form of relationship between "the people" and "the elite", and that it entailed taking an anti-establishment stance. Beyond that, different scholars have emphasised different features that they wish to use to define populism. These differences have occurred both within specific scholarly disciplines and among different disciplines, varying for instance among scholars focusing on different regions and different historical periods. Author Thomas Frank has criticized
9702-646: The largest loan in IMF history. In exchange, the Central Bank would operate on the price of the dollar only when it surpassed certain requirements. The national budget for 2019 reduced the deficit, which was 2.6 percent of GDP in 2018, to zero, and estimated that inflation would decrease from 44% to 23%. This budget was approved by the Congress, despite demonstrations and Kirchnerist rejection. In 1922, inflation in Austria reached 1,426%, and from 1914 to January 1923,
9828-513: The late 1940s and early 1950s. Their development of state trading agencies reintegrated markets and trading networks, ultimately stabilizing prices. During the French Revolution and first Republic , the National Assembly issued bonds, some backed by seized church property, called assignats . Napoleon replaced them with the franc in 1803, at which time the assignats were basically worthless. Stephen D. Dillaye pointed out that one of
9954-471: The legal prices, further exacerbating the shortages. There are also issues with computerized money-handling systems. In Zimbabwe, during the hyperinflation of the Zimbabwe dollar, many automated teller machines and payment card machines struggled with arithmetic overflow errors as customers required many billions and trillions of dollars at one time. Since the late 2010s, prolonged inflation remained
10080-480: The local currency as it rapidly loses its buying power. Instead, they quickly spend any money they receive, which increases the velocity of money flow; this in turn causes further acceleration in prices. This means that the increase in the price level is greater than that of the money supply. This results in an imbalance between the supply and demand for the money (including currency and bank deposits), causing rapid inflation. Very high inflation rates can result in
10206-435: The ministries of treasury and finances into a single ministry, led by Nicolás Dujovne . The Turkish currency and debt crisis caused yet another increase on the price of the dollar. The tariffs on soy exports were restored, as a result of the crisis. Caputo resigned for personal reasons, and Guido Sandleris was appointed as president of the Central Bank . The IMF expanded the loan with an extra 7 billion U.S. dollars,
10332-481: The money created. From this, it might be wondered why any rational government would engage in actions that cause or continue hyperinflation. One reason for such actions is that often the alternative to hyperinflation is either depression or military defeat. The root cause is a matter of more dispute. In both classical economics and monetarism , it is always the result of the monetary authority irresponsibly borrowing money to pay all its expenses. These models focus on
10458-492: The more seamanlike look on cold and hungry. The population lack courage and energy as well as patriotism." Increasing hyperinflation in Bolivia has plagued, and at times crippled, its economy and currency since the 1970s. At one time in 1985, the country experienced an annual inflation rate of more than 20,000%. Fiscal and monetary reform reduced the inflation rate to single digits by the 1990s, and in 2004 Bolivia experienced
10584-423: The nominal cost of goods, and in the supply of currency . Typically, however, the general price level rises even more rapidly than the money supply as people try ridding themselves of the devaluing currency as quickly as possible. As this happens, the real stock of money (i.e., the amount of circulating money divided by the price level) decreases considerably. Hyperinflation is often associated with some stress to
10710-568: The official currency to replace the Straits currency issued by the British. During that time, the cost of basic necessities increased drastically. As the occupation proceeded, the Japanese authorities printed more money to fund their wartime activities, which resulted in hyperinflation and a severe depreciation in value of the banana note. From February to December 1942, $ 100 of Straits currency
10836-549: The other phase is ignited. In the case of rapid expansion of the money supply, prices rise rapidly in response to the increased supply of money relative to the supply of goods and services, and in the case of loss of confidence, the monetary authority responds to the risk premiums it has to pay by "running the printing presses". A number of hyperinflations were caused by some sort of extreme negative supply shock , sometimes but not always associated with wars or natural disasters. Hyperinflation increases stock market prices, wipes out
10962-935: The party. In the October 2019 general elections , the party received 4.3% of the vote and won three seats, all in Khama's home area of Central District – Tshekedi Khama II elected in Serowe West , Leepetswe Lesedi in Serowe South and Baratiwa Mathoothe in Serowe North. However, party leader Biggie Butale failed to be elected in Tati West . On 6 August 2022, the BPF joined the Umbrella for Democratic Change alliance, at that time, uniting all opposition parties in
11088-574: The pengő was replaced in August 1946 by the forint , the total value of all Hungarian banknotes in circulation amounted to 1 ⁄ 1,000 of one US cent. Inflation had peaked at 1.3 × 10 % per month (i.e. prices doubled every 15.6 hours). On 18 August 1946, 400,000,000,000,000,000,000,000,000,000 P (4 × 10 pengő, or four hundred octillion on short scale ) became 1 Ft . Malaya and Singapore were under Japanese occupation from 1942 until 1945 . The Japanese issued " banana notes " as
11214-628: The period of inflation Brazil adopted a total of six different currencies, as the government constantly changed due to rapid devaluation and increase in the number of zeros. Hyperinflation was a major factor in the collapse of the Nationalist government of Chiang Kai-shek . After a brief decrease following the defeat of Japan in the Second Sino-Japanese War, hyperinflation resumed in October 1945. From 1948 to 1949, near
11340-489: The political mainstream or a threat to democracy . The political scientists Yves Mény and Yves Surel noted that "populism" had become "a catchword, particularly in the media, to designate the newborn political or social movements which challenge the entrenched values, rules and institutions of democratic orthodoxy." Typically, the term is used against others, often in a pejorative sense to discredit opponents. Some of those who have repeatedly been referred to as "populists" in
11466-565: The political scientist Ernesto Laclau presents populism as an emancipatory social force through which marginalised groups challenge dominant power structures. Some economists have used the term in reference to governments which engage in substantial public spending financed by foreign loans, resulting in hyperinflation and emergency measures. In popular discourse — where the term has often been used pejoratively — it has sometimes been used synonymously with demagogy , to describe politicians who present overly simplistic answers to complex questions in
11592-441: The political scientist Carlos de la Torre defined populism as "a Manichean discourse that divides politics and society as the struggle between two irreconcilable and antagonistic camps: the people and the oligarchy or the power block." In this understanding, note Mudde and Rovira Kaltwasser, "populism always involves a critique of the establishment and an adulation of the common people", and according to Ben Stanley, populism itself
11718-516: The political scientist Paul Taggart has said of populism that it is "one of the most widely used but poorly understood political concepts of our time". In 1858, an English translator for Alphonse de Lamartine used the term as an antonym for "aristocratic". In the Russian Empire in the 1860s and 1870s, a left-leaning agrarian group referred to itself as the narodniki , which has often been translated into English as populists . But
11844-514: The political, economic, cultural, and media establishment, depicted as a homogeneous entity and accused of placing their own interests, and often the interests of other groups—such as large corporations, foreign countries, or the ruling political party—above the interests of "the people". According to the ideational approach, populism is often combined with other ideologies, such as nationalism, liberalism, socialism , capitalism or consumerism . Thus, populists can be found at different locations along
11970-417: The price of rice, North Korea's hyperinflation peaked in mid-January 2010, but according to black market exchange-rate data, and calculations based on purchasing power parity, North Korea experienced its peak month of inflation in early March 2010. These data points are unofficial, however, and therefore must be treated with a degree of caution. In modern history, Peru underwent a period of hyperinflation in
12096-413: The production of unusually large denominations of banknotes , including those denominated in amounts of 1,000,000,000 (10 , 1 billion) or more. One way to avoid the use of large numbers is by declaring a new unit of currency. (As an example, instead of 10,000,000,000 dollars, a central bank might set 1 new dollar = 1,000,000,000 old dollars, so the new note would read "10 new dollars".) One example of this
12222-458: The public, especially the peasants, and resulted in a reduction in savings, and thus an increase in the amount of currency in circulation. Due to the reduced tax base, the government resorted to printing money, and in 1923 inflation in Hungary reached 98% per month. Between the end of 1945 and July 1946, Hungary went through the highest inflation ever recorded. In 1944, the highest banknote value
12348-463: The purchasing power of private and public savings, distorts the economy in favor of the hoarding of real assets, causes the monetary base (whether specie or hard currency) to flee the country, and makes the afflicted area anathema to investment. One of the most important characteristics of hyperinflation is the accelerating substitution of the inflating money by stable money—gold and silver in former times, then relatively stable foreign currencies after
12474-508: The reasons for the failure was massive counterfeiting of the paper currency, largely through London. According to Dillaye: "Seventeen manufacturing establishments were in full operation in London, with a force of four hundred men devoted to the production of false and forged Assignats." By November 1922, the value in gold of money in circulation had fallen from £ 300 million before World War I to £20 million. The Reichsbank responded by
12600-525: The right tend to express envy for those low on the social ladder, identifying 'special interests' with ethnic or other minorities. Progressive populists, on the other hand, envy those high on the social ladder, identifying 'special interests' with powerful groups such as large corporations. Political scientist Tjitske Akkerman Populism typically entails "celebrating them as the people", in Stanley's words. The political scientist Paul Taggart proposed
12726-665: The same strategy is also employed by some right-wing populists. In the United States during the late 2000s, the Tea Party movement —which presented itself as a defender of the capitalist free market —argued that big business, and its allies in Congress , seeks to undermine the free market and kill competition by stifling small business. Among some 21st century right-wing populists, "the elite" are presented as being left-wing radicals committed to political correctness . The Dutch right-wing populist leader Pim Fortuyn referred to this as
12852-404: The significance of appeals to the people beyond ideological differences, and to conceptualise populism as a discursive phenomenon. Nevertheless, the ideational school's approach to populism is problematic for the amount of substantive assumptions it imposes on how populism actually works as a discursive phenomenon, such as the idea that it is of a moral register, that vindications always refer to
12978-432: The situation. Many governments choose to attempt to solve structural issues without resorting to those solutions, with the goal of bringing inflation down slowly while minimizing social costs of further economic shocks. Unlike low inflation, where the process of rising prices is protracted and not generally noticeable except by studying past market prices, hyperinflation sees a rapid and continuing increase in nominal prices,
13104-482: The term populism is applied to political groups and individuals who make appeals to "the people" and then contrast this group against "the elite". Adopting this approach, Albertazzi and McDonnell define populism as an ideology that "pits a virtuous and homogeneous people against a set of elites and dangerous 'others' who are together depicted as depriving (or attempting to deprive) the sovereign people of their rights, values, prosperity, identity, and voice". Similarly,
13230-482: The term "the heartland" to better reflect what populists often mean in their rhetoric. According to Taggart, "the heartland" was the place "in which, in the populist imagination, a virtuous and unified population resides". Who this "heartland" is can vary between populists, even within the same country. For instance, in Britain, the centre-right Conservative Party conceived of " Middle England " as its heartland, while
13356-423: The term [ populism ] is exceptionally vague and refers in different contexts to a bewildering variety of phenomena. Margaret Canovan , 1981 The word "populism" has been contested, mistranslated and used in reference to a diverse variety of movements and beliefs. The political scientist Will Brett characterised it as "a classic example of a stretched concept, pulled out of shape by overuse and misuse", while
13482-624: The term has rarely been used as a political self-designation since the first decade of the 1900s, its meaning has broadened. As noted by the political scientist Margaret Canovan , "there has been no self-conscious international populist movement which might have attempted to control or limit the term's reference, and as a result those who have used it have been able to attach it a wide variety of meanings." In this it differs from other political terms, like " socialism " or " conservatism ", which have been widely used as self-designations by individuals who have then presented their own, internal definitions of
13608-706: The term is far too ambiguous for that". From examining how the term "populism" had been used, she proposed that seven different types of populism could be discerned. Three of these were forms of "agrarian populism"; these included farmers' radicalism, peasant movements, and intellectual agrarian socialism. The other four were forms of "political populism", representing populist dictatorship, populist democracy, reactionary populism, and politicians' populism. She noted that these were "analytical constructs" and that "real-life examples may well overlap several categories", adding that no single political movement fitted into all seven categories. In this way, Canovan conceived of populism as
13734-515: The true rate of inflation through a variety of techniques. If these actions do not address the root causes of inflation they may undermine trust in the currency, causing further increases in inflation. Price controls will generally result in shortages and hoarding and extremely high demand for the controlled goods, causing disruptions of supply chains . Products available to consumers may diminish or disappear as businesses no longer find it economic to continue producing and/or distributing such goods at
13860-982: The underdog. Populists typically seek to reveal to "the people" how they are oppressed. In doing so, they do not seek to change "the people", but rather seek to preserve the latter's "way of life" as it presently exists, regarding it as a source of good. For populists, the way of life of "the people" is presented as being rooted in history and tradition and regarded as being conducive to public good. Although populist leaders often present themselves as representatives of "the people", they often come from elite strata in society; examples like Berlusconi, Fortuyn, and Haider were all well-connected to their country's political and economic elites. Populism can also be subdivided into "inclusionary" and "exclusionary" forms, which differ in their conceptions of who "the people" are. Inclusionary populism tends to define "the people" more broadly, accepting and advocating for minority and marginalised groups, while exclusionary populism defines "the people" in
13986-489: The unlimited printing of notes, thereby accelerating the devaluation of the mark. In his report to London, Lord D'Abernon wrote: "In the whole course of history, no dog has ever run after its own tail with the speed of the Reichsbank." Germany went through its worst inflation in 1923. In 1922, the highest denomination was 50,000 ℳ . By 1923, the highest denomination was 100,000,000,000,000ℳ ( 10 marks). In December 1923
14112-434: The unrestrained seigniorage of the monetary authority, and the gains from the inflation tax . In neo-classical economic theory, hyperinflation is rooted in a deterioration of the monetary base , that is the confidence that there is a store of value that the currency will be able to command later. In this model, the perceived risk of holding currency rises dramatically, and sellers demand increasingly high premiums to accept
14238-433: The value of the money. If it does not succeed with this reform the substitution of the inflating by stable money goes on. Thus it is not surprising that there have been at least seven historical cases in which the good (foreign) money did fully drive out the use of the inflating currency. In the end, the government had to legalize the former, for otherwise its revenues would have fallen to zero. Hyperinflation has always been
14364-440: The volonté générale ( general will ) of the people. The ideational definition of populism used by Mudde and Rovira Kaltwasser A common approach to defining populism is known as the ideational approach. This emphasises the notion that populism should be defined according to specific ideas which underlie it, as opposed to certain economic policies or leadership styles which populist politicians may display. In this definition,
14490-399: The wake of hyperinflation, but this does not prevent further inflation of the money supply by the central bank , and always leads to widespread shortages of consumer goods if the controls are rigidly enforced. In countries experiencing hyperinflation, the central bank often prints money in larger and larger denominations as the smaller denomination notes become worthless. This can result in
14616-431: The word. Instead it shares similarities with terms such as " far left ", " far right ", or " extremist ", which are often used in political discourse but rarely as self-designations. In news media, the term "populism" has often been conflated with other concepts like demagoguery , and generally presented as something to be "feared and discredited". It has often been applied to movements that are considered to be outside
14742-535: The world's worst natural disasters in 2018, reduced the production of soy and dried up tax revenue. Later in 2018, the Federal Reserve of the United States increased interest rates from 0.25% to 1.75% and then 2%. This caused investors to return to the United States , leaving emerging markets . The effect, a rise in the price of the United States dollar , was modest in most countries, but it
14868-691: Was "no coherent tradition" unifying all of them. While many left-wing parties in the early 20th century presented themselves as the vanguard of the proletariat , by the early 21st century left-wing populists were presenting themselves as the "voice of the people" more widely. On the political right, populism is often combined with nationalism, with "the people" and "the nation" becoming fairly interchangeable categories in their discourse, or combined with religion where "the people" are identified based on religion. Some political scientists have also argued that populism can be divided into left-wing inclusionary and right-wing exclusionary forms, though some argue against
14994-516: Was 1,000 P . By the end of 1945, it was 10,000,000 P, and the highest value in mid-1946 was 100,000,000,000,000,000,000 P (10 pengő). A special currency, the adópengő (or tax pengő ) was created for tax and postal payments. The inflation was such that the value of the adópengő was adjusted each day by radio announcement. On 1 January 1946, one adópengő equaled one pengő, but by late July, one adópengő equaled 2,000,000,000,000,000,000,000 P or 2×10 P (2 sextillion pengő). When
15120-467: Was an abrupt increase in prices. This was due to psychological factors related to the fear of shortages and to the hoarding of goods. During the German and Italian Axis occupation of Greece (1941–1944), the agricultural, mineral, industrial etc. production of Greece were used to sustain the occupation forces, but also to secure provisions for the Afrika Korps . One part of these "sales" of provisions
15246-610: Was felt particularly strongly in Argentina , Brazil and Turkey . Despite the high-interest rates and IMF support, investors feared that the country might fall into a sovereign default once again, especially if another administration were to be voted in during the next election cycle, and started pulling out investments. All those factors led to a dramatic increase in the price of the US dollar in Argentina. The Central Bank increased
15372-526: Was in Zimbabwe in the first decade of the 21st century. In this case, the local money was mainly driven out by the US dollar and the South African rand. Enactment of price controls to prevent discounting the value of paper money relative to gold, silver, hard currency , or other commodities fail to force acceptance of a paper money that lacks intrinsic value. If the entity responsible for printing
15498-477: Was over 1500. From 2000 to 2015, about 95 papers and books including the term "populism" were catalogued each year by Web of Science . In 2016, it grew to 266; in 2017, it was 488, and in 2018, it was 615. Taggart argued that this academic interest was not consistent but appeared in "bursts" of research that reflected the political conditions of the time. Canovan noted that "if the notion of populism did not exist, no social scientist would deliberately invent it;
15624-499: Was seen in the Greek coalition government which brought together the left-wing populist Syriza and the right-wing populist Independent Greeks in 2015. Adherents of the ideational definition have also drawn a distinction between left and right-wing populists. The latter are presented as juxtaposing "the people" against both "the elite" and an additional group who are also regarded as being separate from "the people" and whom "the elite"
15750-621: Was settled with bilateral clearing through the German DEGRIGES and the Italian Sagic companies at very low prices. As the value of Greek exports in drachmas fell, the demand for drachmas followed suit and so did its forex rate. While shortages started due to naval blockades and hoarding, the prices of commodities soared. The other part of the "purchases" was settled with drachmas secured from the Bank of Greece and printed for this purpose by private printing presses. As prices soared,
15876-457: Was worth $ 100 in Japanese scrip , after which the value of Japanese scrip began to erode, reaching $ 385 in December 1943 and $ 1,850 one year later. By 1 August 1945, this had inflated to $ 10,500, and 11 days later it had reached $ 95,000. After 13 August 1945, Japanese scrip had become valueless. North Korea most likely experienced hyperinflation from December 2009 to mid-January 2011. Based on
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