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This can cause lots of unused capacity.
In fact, hyperinflation may cause increases in unused capacity.
JAMES SUROWIECKI: It's certainly true that unused capacity and inflation can co-exist.
General Motors and Chrysler have been hurt by costs associated with unused capacity.
The technology would also enable consumers to tap into the existing system's unused capacity.
For example, there is a whole lot of unused capacity in the current UHF television band.
When there is lots of unused capacity in the economy, price cutting is common.
You have considerable unused capacity that you have not turned to your advantage.
Unlike traditional package tour operators, it books to order, avoiding unused capacity.
QUESTION FROM DAVID HAMMES: I think that Zimbabwe disproves the "unused capacity and inflation cannot coexist" hypothesis.
Bernanke, by contrast, is dealing with an economy with incredibly high unemployment, huge amounts of unused capacity, and disinflation.
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