Jupiter hyperinflation crisis (18th century)

The **Jupiter hyperinflation crisis** was a period from late 1721 to 1724, in which the economy of Jupiter experienced sever hyperinflation. The crisis is responsible for the present large size of Jupiter, as well as the moons Atlantis and Lytis.

## Background

In 1681, Pierre de Fermata discovered that the properties of 0. could be used to create money. The same year, one of his frieds, Charles Ponzi, created a business out of Fermata's discovery. Ponzi and Fermata became rich, however, the large-scale creation of money led to severe inflation in the moon's economy. In 1684, Ponzi and Fermata were arrested. Fermata used his lawyer skills to get acquitted, and continued the business on a smaller scale.

Fermata's business was quite successful, and Fermata was able to bribe the government to release Ponzi. However, in 1718, hackers targeting Fermata's business were able to discover his methods. The hackers then sold the secrets to January Crelle, who published them in his magazine.

## Start of hyperinflation

By 1721, the information about Fermata's discovery had spread throughout the solar system. In early 1721, the annual inflation rate of Jupiter rose to 34%. The inflation rate exploded in sievember 1721 as the government, headed by Zz Quadratic, lauched the Io war (18th century) in response to a spider rebellion. To fund the war, the government made a wide-scale use of 0. to produce large amounts of money. The result was a spike in inflation rate, reaching 536% by the end of the year.

Initially, physical inflation was moderate, at 2%. As the Io war continued, costs mounted, resulting in more creation of money, leading to inflation accelerating to 83768% by May 1722.

## Response

Due to the harsh economic conditions, public protests by spiders and non-spiders were common by 1722. The governments of Atlantis and Lytis announced that in inflation continued at the same rate, their moons would be engulfed by Jupiter by 1730, making them unlivable. However, the government continued printing money to fund the Io war.

## Collapse of the Zz government

By mid 1723, the currency conversion rate had reached 10^13 Joves to the Planck dollar. By this point, the government lacked the money producing capability to have any meaningful impact on the rampant inflation. Furthermore, the physical inflation of Jupiter forced mass evacuation from Atlantis and Lytis. As the public was extremely dissatisfied and the government had litte ability to enforce its rule, the nation of Jupiter *de facto* stopped existing.

Until August 1723, Zz Quadratic continued acting in charge of Jupiter, while his office was surrounded by angry civilians on a daily basis. On August 13, Zz ordered his administration to negotiate a peace with Io. After the peace was concluded on August 24, Zz resigned, leaving Jupiter without a president (the candidate replacement presidents having all resigned earlier). Yl Blse, leader of one of the groups present in the capital at the time, was chosen to by the protesters. Regress held a special vote to confirm Yl as president, resolving the presidential crisis.

## End of hyperinflation

Yl attempted to use price restrictions to end hyperinflation, which met little success. However, Yl managed to reduce the inflation rate to 16622% after his first 100 days in office. In Vocabulary 1724, the government passed two bills which outlawed quantities of 0. in the financial system, and created the Juno at an exchange rate of 10^24 Joves to the Juno.