Controlling hyperinflation?

The US in the late 70s had high inflation.

You might want to check out Volcker and inflation.

A monetary policy with a strong central bank can control inflation.

Yes, hyperinflation can be controlled through monetary policies, but only by countries that have an otherwise strong economy.

The lack of goods and services in a weak economy only increases demand, and cost.

You do not allow the money supply to increase any faster then the real growth of the economic and that is the end of hyerinflation.

Thanks for the reply cicerone. So let me try to elucidate a bit. Imagine living in the time of hyperinflation. People who have money would be willing to get rid of it and invest it in assets (hell invest it in anything....just dont keep the bills worth going to be nothing tomorrow). But there would be no sellers. Reason: in the lines of above why would anyone want to exchange goods for money which aint gonna be any worth tomorrow? So the companies wouldn't sell and the GDP would collapse which will keep fueling the inflation due to ever rising demand? Is there any way to control this situation?

Government buying products and start selling them itself (hypothetically?) or starting penalizing industries who are hoarding? Anyway what is Greece exactly doing with all the aid it is getting? Can anyone explain in detail? (although still Greece isnt in hyperinflation stage, right?)

Sorry for so many questions? Im a novice of the purest form

Generally speaking, what you write is correct; that's the reason why gold prices are at the level they are today, because of people's fear of inflation.

As I've pointed out in other forums, gold investment is just speculation which offers nothing. The only value for gold is generally for use in jewelry. The reason for this is that the total value of gold at today's prices doesn't have the support of currency to back it up. The US has over 81 tonnes of gold. Do the math. In 2008, the total value of US money in circulation was under $900 billion. The demand and supply doesn't compute.

Different economies have different ways of fighting inflation dependent upon each country's GDP mix of exports and imports. A country like Greece who's economy is based mostly on tourism doesn't suffer too much from inflation, because they don't have any money. Everybody has to live modestly where jobs are scarce, and the availability of income is difficult.
The bailouts from the Euro countries to fund their government only puts more pressure on creating inflation - it would seem - but their economy isn't really growing. There will be a point at which time the other Euro countries would not be able to stabilize their currency, then the whole house of cards would be in danger of collapse. As long as liquidity is there, inflation will be kept in check.

It's a tricky mix of each country's strength in their economy, their monetary policies, and gaming all of the variables correctly. After all, economics is not science, it's an art.

GDP collapse mean unemployment going up and less M1 in the economic so once more no hyperinflation.

Control the money supply in relationship to the rate of growth and you can not have inflation.